Manufacturing & Supply Chain

UK Government offers fast-growing UK companies £1.25bn support package

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UK Government offers fast-growing UK companies £1.25bn support package

UK Government offers fast-growing UK companies £1.25bn support package
April 21
12:05 2020
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Chancellor Rishi Sunak has announced a £1.25bn government package to support UK start-ups and businesses driving research and development during the COVID-19 crisis.

In a statement Alok Sharma, business secretary, said: “The UK is a world leader in innovation and at this hugely challenging time, we know that young, fast-growing firms require tailored support to see them through. This wide-ranging package delivers important help that will protect some of the most dynamic sectors of our economy.”

Chancellor of the Exchequer Rishi Sunak, said: “Britain is a global leader when it comes to innovation. Our start-ups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis.

“This new, world-leading fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to create new ideas and spread prosperity.”

Delivered in partnership with the British Business Bank and launching in May, the Future Fund will provide UK-based companies with between £125,000 and £5m, with match funding from private investors. According to HM Treasury, the 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. Eligible businesses will be unlisted, UK-registered and will have raised at least £250,000 in equity investment in the last five years.

The government is committing an initial £250m in funding towards the scheme, which will initially be open until the end of September. The scale of the fund will be kept under review.

The £750m of 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 will accelerate up to £200m of grant and loan payments for its 2,500 existing Innovate UK customers on an opt-in basis. An extra £550m 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 in receipt of Innovate UK funding. The first payments will be made by mid-May.

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