Deputy First Minister Ieuan Wyn Jones has launched the new Local Investment Fund, designed to support the growth of more than 4,000 new or small enterprises by generating total investment of some £54 million.
The Local Authority led fund will provide grants of up to £5,000 meet up to 40 per cent of the cost of capital investments such as buying new equipment or extending business premises.
The Fund, which will have total resources of £23 million from the European Development Fund, is expected to generate total investment of approximately £54 million and help create some 3,000 jobs.
The new Fund builds on the success of the £8.9 million ERDF -funded South West Wales Flexible Business Finance Scheme, led by Carmarthenshire County Council, which supports small firms across Carmarthenshire, Ceredigion, Neath Port Talbot, Pembrokeshire and Swansea.
Now, the South East Wales local authorities, led by Rhondda Cynon Taff County Borough Council, and the North West Wales local authorities, led by Isle of Anglesey County Council, have worked together to complete the package of support for enterprises across the Convergence area of West Wales and the Valleys.
Mr Jones said, "I am pleased to announce the start of the new Local Investment Fund - an innovative and collaborative project to help small companies invest in new equipment or improve businesses processes."
"This new investment builds on our pledge to target investment during this economic downturn and will be of particular value to small or new businesses in Wales through the current difficult period."
"This announcement also demonstrates how we are using Structural Funds to support entrepreneurs and develop activities which will further strengthen the economic base of West Wales and the Valleys through creating and safeguarding jobs as well as improving business competitiveness."
Melvyn Nott, Welsh Local Government Representative said, "The Local Investment Fund is the culmination of excellent joint working between the 15 local authorities in the European Convergence area of Wales and the Welsh Assembly Government. It has been designed to complement the Assembly Government's Single Investment Fund. While the local scheme will offer small levels of support to businesses for capital investments, generally in the range £1,000 to £5,000, the Assembly's scheme will look at cases above £5,000. It makes it so much easier to understand for businesses."
More information and contact details can be found at www.business-support-wales.gov.uk.