The British Business Bank newly supported 1,400 smaller businesses across Wales in its last financial year, with these firms forecasting the creation of 1,300 new jobs and the support of a further 17,200 existing ones.
In its third annual impact report for the 2025-26 financial year, the UK Government's economic development bank estimates that the supported firms will generate £600m in additional turnover, delivering a forecast uplift in economic output of £300m to the Welsh economy over the lifetime of the finance they have received.
UK-wide impact and the Investment Fund for Wales
For the UK as a 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.
Recent investments and expansion
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 support 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.
Bank director comments on impact
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."
