COVID 19: £1.25 billion support announced for Start-ups

The UK Government has finally announced a support package for start-ups. The support consists of an investment fund, loans and grants to help start-ups stay afloat during the Coronavirus Pandemic. This support follows and is in addition the previously announced Coronavirus Job Retention Scheme (CJRS).

The £1.25 billion support includes £500 million investment fund for high-growth companies impacted by the Coronavirus, £250 million of which will be pledged by the Government, and the remaining £250 million from the private sector. SMEs focusing on research and development will benefit from £750 million of grants and loans.

£500 million investment fund

The £500 million investment fund will be delivered in partnership with the British Business Bank and will be available from May 2020. The fund will provide UK-based start-ups between £125,000 to £5 million from the government, with private investors at least matching the government amount. The amount will be issued via convertible notes

Eligibility: The investment fund focuses on start-ups but is open to all UK-based unlisted companies who have previously raised at least £250,000 in equity investment from third-party investors in the last 5 years.

£750 million loans and grants

The £750 million of support will be available for SMEs focused on Research & Development and will be available through the existing Innovate UK scheme.

£200 million of the overall support will be made available to the existing 2500 customers of Innovate UK on an opt-in basis.  The remaining £550 million will be used to increase support for existing customers, and £175,000 will be offered to the 1200 firms currently not in receipt of Innovate UK funding.

Contact one of our Forbury Tech Legal Experts to find out more about this scheme: https://www.forbury.tech/ourteam