Business Loans provider to support small businesses in Wales through £130 million investment
Loan provider BCRS Business Loans is to support small businesses in Wales after being appointed as a fund manager for the new £130 million Investment Fund for Wales launched by British Business Bank.
Having worked with SMEs unable to access finance from traditional sources in the West Midlands since 2002, BCRS Business Loans has expanded into Wales to help smaller businesses there prosper and thrive under the fund, which was officially launched in Cardiff on Thursday (23 November).
The Investment Fund for Wales will drive sustainable economic growth by supporting new and growing businesses through investment strategies that best meet the needs of these firms.
Operating across the whole of Wales, the fund includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help small and medium-sized businesses start up, scale up or stay ahead.
Three fund managers have been appointed, with BCRS Business Loans managing the smaller loans part of the fund (£25,000 to £100,000). FW Capital will be responsible for larger loans (£100,000 to £2 million) and Foresight will manage equity deals (up to £5 million).
BCRS Business Loans CEO Stephen Deakin said: “We are delighted to be named as a fund manager for the British Business Bank’s new £130 million Investment Fund for Wales to support business growth and employment opportunities.
“Moving into Wales will allow our experienced team and proven model to safeguard jobs and foster growth. As a non-profit we are not driven by shareholder return or corporate gain but to help SMEs and the communities they serve based on a core belief that no viable business should go unsupported. We believe there are many businesses in Wales who could benefit from this approach.
“BCRS are a relationship-based lender and central to this is our commitment to meet all our customers face to face before writing a loan. We have hired three new Welsh Business Development Mangers who are based in Wales full time and whose sole focus will be helping SMEs in the region.
“We have worked with the British Business Bank in successfully delivering Midlands Engine Investment Fund (MEIF) and we look forward to working with our Investment Fund for Wales partners to deliver further success.”
Since BCRS was founded as a community development financial institution in 2002, it has provided loans worth more than £85 million to businesses across the West Midlands.
A social impact report for the last financial year showed BCRS lent £6.5m to 72 businesses, safeguarding 999 jobs and creating 473 roles, adding £33.7m in value to the economy of the West Midlands and surrounding region.
The Investment Fund for Wales is the fourth of six new Nations and Regions Investment Funds being launched by the British Business Bank and follows the launch of The Investment Fund for Northern Ireland earlier this month, The Investment Fund for Scotland in October and the South West Investment Fund in July.
A total of £1.6 billion has been committed to the new funds to drive sustainable economic growth and break down barriers in access to finance.
Following Thursday’s launch, the British Business Bank will hold a series of information roadshows aimed at people working in the small business finance ecosystem including enterprise agencies, advisers, accountants and more.
The first will be held in Llandudno on 20 February with additional sessions held in Aberystwyth, Swansea and Newport later that week. An online version of the session will also take place on 7 December 2023 at 11.00am.
