The Chancellor today has announced a new £1.25 billion in funding to protect firms driving innovation and development. This will ensure these companies are protected through the crisis so they can continue to develop innovative new products and help power UK growth.
Included within the package announced today is a new £500 million loan scheme for high-growth firms, called the Future Fund, and £750 million of targeted support for small and medium sized businesses focusing on research and development.
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.”
The Future Fund is being delivered in partnership with the British Business Bank and will launch in May. The fund 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 government is committing an initial £250 million in funding towards the scheme, which will be open until September.
Welcoming the Chancellor’s announcement of a Future Fund, supporting start-ups by delivering an initial commitment of £250m of new government funding which will be unlocked by private investment on a match funded basis, BCC Head of Economics Suren Thiru said:
“The Future Fund will help provide urgently needed support for many of our most innovative and fast-growing businesses around the UK, as we have urged.
“The fund fills an important gap in existing government support and could make a real difference to entrepreneurial firms navigating challenging circumstances. It’s crucial that this enhanced support reaches companies in difficulty as quickly as possible.”
The £750 million of targeted support will be available through Innovate UK’s grants and loans scheme and first payments are expected to be made in May.
This new funding support will provide a vital cashflow boost to many smaller businesses within Herefordshire and Worcestershire at the forefront of technology development and innovation and will allow these businesses to continue their important growth during this period of time.
Further information on the new scheme can be found here.
For more support and guidance for your business please see our Coronavirus Information Hub which details all of the latest support available.