The Development Bank of Wales has approved loans totalling £80m from its £100m fund for firms hit by the economic fallout from the coronavirus.
Launched in March, its £100m Covid-19 Wales Business Loan Scheme, forms part of the Welsh Government's £500m Economic Resilience Fund (ERF).
The Wrexham headquartered development bank, which is wholly-owned by the Welsh Government, said of the £80m in approved loans, some £50m had been drawn down by companies.
The funding provides loans of up to £250,000, repayable over six year terms at an interest rate of 2% - with the first year interest holiday rescheduled for the remaining five.
To be eligible firms must have been trading for at least two years.
Of the 1,275 companies that have their loans approved, 840 have drawn down funding.
The average deal size is £62,000.
By region:
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South Wales: £35m
Mid and West Wales: £25m
North Wales: £20m
Leading sectors:
Wholesale and retail: £13m.
Construction: £13m.
Accommodation and food: £10m.
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Professional, scientific and tech: £10m.
Manufacturing: £8m.
Chief executive of the Development Bank of Wales, Giles Thorley, said: “The last six weeks have been exceptionally difficult and worrying times for businesses owners and management teams across Wales.
"The priority has been getting cash out as quickly as possible to as many small businesses as possible to help them endure, protecting livelihoods and safeguarding vital employment.
"With £80m of lending facilities now approved and £50m already drawn I am hopeful that many companies will be in a strong position once restrictions ease to kick start trading, boosting the national economy and local communities.”
One recipient of funding, is Treorchy-based South Wales Metal Finishing, which provides a range of finishing services including zinc plating, anodising, tin and silver to the engineering, automotive, medical, aircraft and metal pressing industries.
Its loan of £100,000 has safeguarded 14 jobs.
Director of the family-run firm, Lulia Demaid, said: "The timely help from Welsh Government and the Development Bank of Wales means that we’ve now got every chance of weathering the storm that is Covid-19.
"We are so grateful for the support and the turnaround time from applying for the loan to getting the money into our account. It really has made the biggest difference and has enabled us to look after our staff at this incredibly difficult time.”
Last month Economy Minister Ken Skates that said a successor coronavirus fund for the development bank was being looked at and one that could back firms less than two years old.
However, with the high street banks and other lenders having significantly ramped up emergency loans via the various British Business Bank administered schemes, the latest being the Bounce Bank Loan scheme - it will have to take a view as to whether another fund is necessary.
Latest figures show £2bn in lending under the Bounce Bank Loan Scheme to date, with £5.5bn under the British Business Bank's Coronavirus Business Interruption Loan Scheme.
There are no breakdown figures on both schemes for the nations of the 海角视频 and the regions of England.
The development bank could funnel funds yet invested from its portfolio of mainstream funds to back a new low interest tranche of finance to hard hit SMEs.
Moreover, the Welsh Government could provide financial transactions capital from the Treasury which can only be used for loans and equity investments. A proportion of the funding has to repaid to the Treasury.
The Welsh Government has yet to reveal the support it will provide to those firms that have fallen through the gaps of its £1.7bn in coronavirus grants, business rate reliefs and loans to date.
As well as the ERF there is a £1.2bn package of grants and business rate reliefs for firms impacted in the hospitality, retail and tourism sectors — administered through the 22 local authorities.
Firms not entitled to this £1.7bn package of support , include those that don't own their own premises — like start-ups in co-working spaces — so don't directly pay business rates and non VAT registered firms.
Mr Skates said support for these types of businesses would be at heart of the next tranche of the ERF.
A Welsh Government spokesperson said: “We are working extremely hard to support businesses across Wales during this incredibly challenging time and have received a huge number of applications to our £500m Economic Resilience Fund and our Welsh Government business grants scheme.
“We are currently considering how remaining funds can be best used to support those in need including businesses that we haven’t yet been able to reach.”
To date some £65m of applications have been processed under the ERF from 9,500 claims for grant support for firms ranging from VAT registered small firms up to large employers.