British Business Bank ramping up support for firms in Wales

It newly supported 1,400 firms in Wales in its last year financial year

The British Business Bank newly supported 1,400 smaller businesses across Wales in its last financial year. It said with its backing these businesses are forecasting to create 1,300 new jobs and support a further 17,200 existing ones.

In its third annual impact report for its 2025-26 financial year the economic development bank of the UK Government estimates the supported firms will generate £600m in additional turnover which will deliver a forecast uplift in economic output of £300m to the Welsh economy over the lifetime of the finance they have received.

For the UK as whole, through direct lending to SMEs, lending guarantees and leveraged funding on deals, the British Business Bank said it has a £9.4bn impact in its last financial year benefitting 38,000 firms. The bank has not provided figures on investment levels for Wales or the other nations and regions of the UK.

A key driver to the bank’s impact in Wales is its £130m Investment Fund for Wales (IFW). The fund’s equity element is managed by Foresight. As well as its equity element the Investment Fund for Wales has a large debt fund up to £2m per deal managed by Development Bank of Wales subsidiary FW Wales, and a small debt component, up to £100,000, managed by BCRS Business Loans.

The fund celebrated its two-year anniversary earlier this year with a £37m investment milestone, following over 102 investments supporting 93 businesses across Wales, spanning a wide range of sectors and attracting additional private sector investment into the Welsh economy.

Recent investments include the fund’s largest equity investment to date – a £3.5m investment into industrial services firm Advantiv to supporting its expansion, new UK locations and operational innovation.

The bank is also expanding support to the Cardiff City region through a new £6.5m innovation cluster, helping drive more equity investment into businesses operating in the eight priority industrial strategy sectors.

Jess Phillips- Harris, director, Wales, local growth team at the British Business Bank, said:“This year’s impact report shows the real difference that British Business Bank support is making to businesses and communities across Wales.

As the bank’s support continues to grow, we’re backing more businesses across a wider range of sectors, while bringing more private investment into Wales alongside our own funding. This is helping innovative companies develop new technologies, manufacturers expand their operations and entrepreneurs turn ambitious plans into long-term growth.

Through programmes such as the Investment Fund for Wales, Start Up Loans and angel syndicate initiatives, we’re backing ambitious businesses across Wales, helping individual companies grow while strengthening local economies, supporting skilled jobs and contributing to long-term prosperity across the country.”