Development Bank of Wales
The Welsh Government's own development bank, offering loans from £1,000 to £10 million and equity investment to businesses based in Wales or moving there. Loans are priced on risk.
- Personal guarantee likely
- Secured on assets
- Debenture (charge over company assets)
- Shares
How it works
The Development Bank of Wales is wholly owned by the Welsh Ministers. It lends and invests directly, so you apply to it rather than through a bank.
- Micro loans: £1,000 to £100,000 for small businesses.
- Business loans: £100,000 to £10 million, repayable over up to 15 years.
- Property development loans: £150,000 to £10 million for residential, mixed-use and commercial schemes.
- Equity: seed investment of £100,000 to £350,000 for technology start-ups, growth capital for established businesses, and finance for management teams buying a business. For early-stage businesses it always looks to invest alongside other investors.
The bank prices loans on risk, so the rate depends on your business. It may ask for a personal guarantee, either unsecured or backed by a charge over an asset, and a secured guarantee usually lowers the cost.
The British Business Bank's Investment Fund for Wales is separate, and is covered under regional investment funds.
Upsides and downsides
Upsides
- Lends from £1,000, so it can help very small businesses
- Loans, equity and property finance from one public lender
- Exists to support the Welsh economy, so it may fund businesses others will not
- Long repayment terms of up to 15 years
Downsides
- Only for businesses based in Wales or moving there
- Loans are priced on risk and may cost more than a mainstream bank loan
- Personal guarantees are often needed
Risks
- Being personally liable under a guarantee, or losing an asset that backs it
- Losing some ownership and control if you take equity
What it costs
- How it is priced
- Interest and fees priced on the risk of each business, or shares for equity
- Costs that are easy to miss
- Arrangement fees
- Personal guarantees, sometimes backed by a charge over your home or other assets
- Legal costs for equity deals
Micro loans from £1,000 to £100,000. Business loans up to £10 million. Seed equity £100,000 to £350,000.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- Your business is based in Wales
- A bank has turned you down or will only fund part of what you need
Unlikely to fit when
- Your business is not based in Wales (it lends only to Welsh businesses, or those moving to Wales)
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company, Community interest company, Co-operative or community benefit society
- Your business must be based in Wales, or willing to relocate there
- Seed equity is for technology start-ups that will run their operations and management from Wales
- Equity is only for companies that can issue shares
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all government-backed and community lending
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- Business plan
- Financial forecasts
- Recent accounts
Regulation and protections
A development bank wholly owned by the Welsh Ministers. Which protections and complaint routes apply depends on the type of finance, so check the agreement.
Types of provider: Development Bank of Wales.
Also consider
Sources
- Development Bank of Wales: home page · checked 7 October 2026
- Development Bank of Wales: Business loans · checked 7 October 2026
- Development Bank of Wales: Equity finance · checked 7 October 2026
- Development Bank of Wales: Seed funding for tech start-ups · checked 7 October 2026