The Chancellor has announced a £1.25bn government support package for high-growth and R&D intensive UK businesses impacted by the Covid-19 outbreak. The package includes the £500m ‘future fund’, launching in May, and £750m made available through Innovate UK’s grants and loan scheme.
The future fund will provide convertible loans between £125,000 and £5m to high-growth, unlisted UK companies impacted by the coronavirus who have previously raised at least £250,000 in equity investment from third party investors in the last five years. These loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. The government loans will only be available if companies can obtain matched private investment and will constitute no more than 50% of the overall bridge funding being provided, with the remaining amount provided by matched investors.
Innovate UK’s grants and loan scheme will provide a £750m fund of targeted support for the most R&D intensive small and medium-size firms. Up to £200m will be offered to 2,500 existing Innovate UK customers on an opt-in basis. An extra £550m will be made available to increase support for existing customers and £175,000 of support will be offered to around 1,200 firms not currently in receipt of Innovate UK funding. The first payments will be made by mid-May.
The Chancellor has announced a £1.25bn government support package for high-growth and R&D intensive UK businesses impacted by the Covid-19 outbreak. The package includes the £500m ‘future fund’, launching in May, and £750m made available through Innovate UK’s grants and loan scheme.
The future fund will provide convertible loans between £125,000 and £5m to high-growth, unlisted UK companies impacted by the coronavirus who have previously raised at least £250,000 in equity investment from third party investors in the last five years. These loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. The government loans will only be available if companies can obtain matched private investment and will constitute no more than 50% of the overall bridge funding being provided, with the remaining amount provided by matched investors.
Innovate UK’s grants and loan scheme will provide a £750m fund of targeted support for the most R&D intensive small and medium-size firms. Up to £200m will be offered to 2,500 existing Innovate UK customers on an opt-in basis. An extra £550m will be made available to increase support for existing customers and £175,000 of support will be offered to around 1,200 firms not currently in receipt of Innovate UK funding. The first payments will be made by mid-May.
