New support package for innovative firms hit by coronavirus

The Government has announced a substantial new support package for innovative firms hit by the coronarvirus.

The package includes a new £500 million investment fund, comprising funding from government and the private sector, for high-growth companies, as well as a £750 million programme of grants and loans for SMEs focusing on research and development.

The £500 million Future Fund has been designed to ensure that high-growth companies across the UK receive the investment they need to continue during the crisis. It will provide UK-based companies with between £125,000 and £5 million from the government, with private investors at least matching the government commitment.

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.

To be eligible, a business must be an unlisted UK-registered company that has previously raised at least £250,000 in equity investment from third party investors in the last five years. The fund, which will be delivered in partnership with the British Business Bank, will be launched in May. Further details on the eligibility criteria and fund operation will be published in due course.

The £750 million targeted support for the most R&D intensive small and medium size firms will be available through Innovate UK’s grants and loan scheme.

Innovate UK, the national innovation agency, will accelerate up to £200 million of grant and loan payments for its 2,500 existing customers on an opt-in basis. An extra £550 million will also 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.

For more information, please visit: https://www.gov.uk/government/news/billion-pound-support-package-for-innovative-firms-hit-by-coronavirus

* WCC works with University of Warwick Science Park to deliver a dedicated programme for high tech and other innovation-led businesses. For more information, please visit:  http://www.business-ready.co.uk/