The British Business Bank should create a specific equity fund for Wales to support firms through the pandemic induced recession, says leading enterprise academic Prof Dylan Jones-Evans.
The economic development bank, set up by the 海角视频 Government, argues that through devolution Wales has its own debt and equity funds run by the Development Bank of Wales with funding from the European Union and the Welsh Government.
However, it has provided equity and loan finance to other areas of the 海角视频 in receipt of European funding in Northern Ireland, which has its own devolved administration, and the north of England.
Last month it allocated an additional £54.3m to funds managed by Mercia Asset Management in the Northern Powerhouse Investment Fund (NPIF), which is supported financially by the European Regional Development Fund and the European Investment Bank.
Of the new allocations, £23.7m has been assigned to the existing equity fund and £30.6m to the existing debt fund.
It has also backed another EU part -financed regional fund in England, with £25m into the £250m Midlands Engine Investment Fund (MEIF).
In a statement the British Business Bank said: "NPIF and MEIF were set up in 2019 to make use of EU funding. Funding for SMEs is partially devolved and the Development Bank for Wales has set up an equivalent fund in Wales.
"The bank is always open to new ideas for how it can support SMEs in the devolved nations, but has no immediate plans to implement a specific equity fund for Wales."
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Prof Dylan Jones-Evans said a British Business Bank backed equity fund for Wales was urgently needed with the economy facing huge challenges as a result of the pandemic.
It was also a recommendation in the access to finance review 2014, chaired by Prof Dylan-Jones, which culminated in the establishment of the Development Bank of Wales.
Prof Jones-Evans said: "It is disappointing that six years since our review recommended that the British Business Bank should provide greater access to Wales for equity funding, nothing has happened.
"While it’s true that the funding to the British Business Bank doesn't fall under normal devolution rules so that Wales gets its fair share of funding, there is certainly a strong case for support given that it has one of the lowest levels of venture capital funding in the 海角视频.
"The Wales Office and Welsh Government may wish to look at how, as we come out of this recession, the British Business Bank can do more for Wales and Welsh business."
Businesses in Wales are able to access 海角视频-wide funding from a range of lenders accredited by the British Business Bank.
As a wholesale operation its partners in the marketplace are mandated to invest on its behalf, which include banks, leasing companies, venture capitalists and web-based platforms.
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There are currently more than 3,300 companies in Wales who have received finance of £300m plus through the different programmes offered by the bank, which has its head office in Sheffield.
This is outside of the British Business Bank's administered coronavarius loan schemes which has seen accredited lenders, including all the high street banks, providing billions of pounds in low interest bearing finance to firms across Wales and the rest of the 海角视频.
Its latest coronavirus fund, the Bounce Bank Loans Scheme, is providing loans up to £50,000 to small firms with no personal guarantees and interest of 2.5%, which is waived for the first year. The lending from the banks also has a 100% guarantee from the Treasury in the event of default.
The Development Bank of Wales has applied to become an accredited lender under the British Business Bank's administered Coronavirus Business Interruption Loan Scheme (CBILS)
However, a decision has yet to be made.
As part of the Welsh Government's £500m Economic Resilience Fund, £100m was assigned to the development bank's Covid-19 Wales Business Loan Scheme.
To date £80m in loans have been approved, of which £50m has reached businesses.