Referral from the Development Bank of Wales for its Rescue and Restructuring Scheme
The Subsidy Advice Unit (SAU) has published its report providing advice to the Welsh Government concerning its proposed Development Bank of Wales Rescue and Restructuring scheme (the Scheme).
Administrative timetable
| Date | Action |
| 5 March 2024 | SAU’s report published |
| 7 February 2024 | Deadline for receipt of any third-party submissions (submissions after 5pm on this date cannot be taken into account) |
| 24 January 2024 | Beginning of reporting period |
Final report
5 March 2024: The SAU has published its report providing advice to the Welsh Government concerning its proposed Development Bank of Wales Rescue and Restructuring scheme. The report includes the SAU’s evaluation of the Welsh Government’s Assessment of Compliance of its proposed scheme with the requirements set out in the Subsidy Control Act 2022.
- (5.3.24)
Request from the Welsh Government
24 January 2024: The SAU has accepted a request for a report from the Welsh Government concerning its proposed Scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of the Welsh Government’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy scheme provided by the Welsh Government
The Development Bank of Wales Rescue and Restructuring Scheme will provide support to ailing and insolvent small and medium sized enterprises in Wales. The support is intended to prevent the failure of otherwise viable enterprises and contribute to specific policy objectives by limiting social hardship.
For restructuring subsidies, the enterprise must be able to demonstrate a return to viability via the implementation of a restructuring plan and for rescue subsidies, the enterprise must have commenced the production of a restructuring plan.
Support will be provided in the form of loans repayable over the shortest term possible, to a maximum of six months for rescue subsidies and five years for restructuring subsidies. The proposed scheme size is £40.5 million and the maximum loan size to an individual enterprise will be £2.5 million. The value of the subsidy will be calculated using the Gross Cash Equivalent calculation.
The Development Bank of Wales Rescue and Restructuring Scheme will be operated in line with the Subsidy Control Act 2022. It will allow for continuation of the support currently provided by the Development Bank of Wales under a European Commission approved scheme, operated pursuant to the EC State Aid regulations for rescuing and restructuring non-financial undertakings in difficulty guidelines.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the Welsh Government’s proposed Scheme, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at SAU-DBWR&[email protected] copying the public authority at [email protected]
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
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The SAU will only take your submission into account if it can be shared with the Welsh Government. The SAU will send a copy of your submission to the Welsh Government together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the Welsh Government using the email address provided above.
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The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
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For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contact
- CMA press team: 020 3738 6460 or [email protected]
Updates to this page
Published 24 January 2024Last updated 5 March 2024 + show all updates
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Final report published.
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First published.