Eighty-seven Welsh businesses had taken out loans totalling £1.9m from the Wales Micro-business Loan Fund by the end of June 2014 helping to create 281 jobs and protect a further 264 jobs.

These loans also enabled the businesses to secure an additional £2.4m, injecting £4.3m into the Welsh economy.

Ambitious businesses in Wales’ hospitality, retail, tourism and wholesale sectors led the way, benefitting from more than 40 per cent of the loans (£870,000), creating 115 jobs and protecting 78 jobs.

One such company is the Wales 1 Day Nursery, a new children’s nursery which is set to open in Magor on August 18 thanks to a £25,000 micro loan from Finance Wales.

Peter and Victoria Buttle, the couple behind Cardiff’s successful Appletree Nurseries, are opening the new venture.

The Buttles have now received three micro loans from Finance Wales. They used the first to open their Cardiff Bay nursery in 2009, their second to open the nursery in Magor and a third to set up another Appletree Nursery at Llanishen Primary School in Cardiff and to refurbish Cardiff Bay. The business has expanded over the last five years and now employs 26 trained staff including the four new members of staff at Magor.

Peter Buttle said: "We aim to provide conveniently located nurseries which provide the children in our care with a happy, safe and inspirational environment to play and learn. The three micro loans we’ve received from Finance Wales have provided the injection of capital we needed to establish and expand our business and opening our nursery in Magor is a significant achievement for us. Finance Wales understands our business plan, they have a simple, speedy application process and we value the support they’ve provided us with.”

Economy, Science and Transport Minister, Edwina Hart said: “Micro-businesses make a significant contribution to the Welsh economy and I’m encouraged to see the hospitality, retail, tourism and wholesale sectors taking advantage of what the fund can offer, investing in their businesses and creating jobs.”

Five social enterprises have also taken advantage of loans totalling £100,000 from the part of the Wales Micro-business Loan Fund earmarked for Welsh social enterprises, boosting employment in the sector by 14 jobs and protecting nine jobs.

Eligible Welsh SMEs can apply for micro loans of between £1,000 and £50,000 from Finance Wales. The loans can help with a range of investment needs, including start-up costs, capital expenditure and stock purchases.