Three companies have benefited from the first minor loans from the British Business Bank's new £130 million Wales Investment Fund, which will help them with their expansion goals.

The fund manager for the fund's small loan components, BCRS, is situated in the Midlands. It has advanced debt totaling £40,000 to Wynnstay Self Storage in Wrexham, £30,000 to Bluebox Optics, a maker of photonics equipment, in Blackwood, and £25,000 to Metro Eatery, a takeaway company in Vale of Glamorgan.

The Investment Fund for Wales was launched by the UK Government’s economic regeneration bank last November to provide growth finance to Welsh SMEs.

The small loans element allows BCRS to provide funding ranging from £25,000 to £100,000.

The fund also has a larger debt element, managed by the Development Bank of Wales, providing repayable finance ranging from £100,000 to £2m. The fund’s £50m equity element, which can see investment of up to £5m per deal, is managed by Foresight.

Wynnstay Self Storage was inherited by Matt Pritchard when his father and founder, Geoff Pritchard, passed away in 2016.

He joined his father’s sawmill business in 1999 and opened up a bespoke joinery workshop. Rising costs meant they were importing more timber and after a year at the helm, he made the decision to diversify into self storage from re-purposed shipping containers.

Mr Pritchard said “Our success has all been down to word of mouth and we are consistently full to capacity. This injection of investment will enable us to purchase a further ten shipping containers and to develop the infrastructure to increase the size of the business in order that our land is more efficiently utilised. I also plan on rebuilding my existing workshop into one that is more fit for purpose.”

Bluebox Optics chief executive, Ron Yandle, said: “We have worked extensively with universities on medical device research projects and this loan will enable us to develop discussions we’ve had with Imperial College London on developing a LED light engine and camera system to help make breast cancer reconstruction surgery more efficient.“

Getting finance to develop, rather than produce, a device within the field of medical technology can be challenging.

Muhammed Mujib, of Metro Eatery, said the funding will finance the fit-out a second takeaway in Dinas Powys.

Mark Sterritt, director, nations and regions investment funds at the British Business Bank, said: “Our Investment Fund for Wales was established to support smaller businesses with their growth ambitions and these three smaller loans demonstrate that.

“Wynnstay Self Storage, Bluebox Optics and Metro Eatery Limited have solid foundations to build upon, and this growth capital will certainly enable them to continue progressing their businesses to the next level. We wish them every success with their continued growth.”

Stephen Deakin, chief executive at BCRS, said: “BCRS are proud to be supporting small businesses like Wynnstay Self Storage, Bluebox Optics and Metro Eatery to gain access to finance so that they can grow and thrive, which in turn will contribute to the success of the wider Welsh economy.

“Small businesses remain the backbone of our economy and a force for social good. Working with Investment Fund for Wales we will continue to ensure no viable business goes unsupported.”