Funding scheme for small business in Wales proposed

Up to £150 million could be made available for a small business investment fund, according to plans recently unveiled by the Welsh Assembly government.

The Labour-Plaid Cymru coalition wants to borrow money from the European Investment Bank to help small firms in Wales that currently find it difficult to raise capital, the BBC reports.

Departmental budgets and European funding would also provide some money for the project, which has been welcomed by the Federation of Small Businesses (FSB).

Policy officer Non Rhys said: "It could prove far more flexible and adaptable than the grant structure.

"It would also mean that the investment would benefit firms over that crucial first 18 months."

Deputy first minister Ieuan Wyn Jones said that the scheme would be "focused on urban areas" and could potentially "unlock the potential of the European funds to benefit communities".

Businesses applying for funding must be able to demonstrate good accounting and taxation practices.

The FSB is currently operating a fund to help UK businesses hit by the recent flooding to get back on their feet.