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COVID - 19 Update - Government Support Package for Innovative Firms  - 22nd April 2020 - Click for larger version COVID - 19 Update - Government Support Package for Innovative Firms - 22nd April 2020

The Chancellor announced this week that UK businesses driving innovation and development will be assisted during the coronavirus outbreak with a £1.25 billion government support package.

The £1.25bn package includes:

- the Future Fund – a new £500m investment fund for high-growth firms impacted by COVID-19; and

- £750m of grants and loans for research and development focused SMEs.

This targeted assistance aims to protect firms by providing them with access to the capital necessary to enable them to continue to develop products and growth in what are considered some of the most dynamic sectors in the UK economy.

These sectors include technology and life sciences, which are of vital importance during this crisis.

The Future Fund will be launched in May and is delivered in partnership with the British Business Bank. To be eligible, the business must:

- be an unlisted UK registered company; and

- have previously raised at least £250,000 in equity investment from third party investors in the last five years.

For companies that qualify, the fund will provide between £125,000 and £5 million from the government, matched by private investors.

The remaining £750m will be made available through Innovate UK’s (the national innovation agency) grants and loan scheme and is intended for the most R&D intensive small and medium sized firms.

As well as providing up to £200 million of grants and loan payments for existing Innovate UK customers, approximately £175,000 of support will be offered to firms not currently in receipt of Innovate UK funding.

This support package will serve as a welcome cashflow boost for many smaller businesses and will aid innovative British start-ups which will be vital for the UK economy’s recovery efforts in the coming months once the outbreak is over.

Further detail on eligibility criteria and fund operation are expected in due course, but we’d encourage any companies who might qualify for the scheme and are interested to get in touch with:

David Beveridge (db@macdonaldhenderson.co.uk); or

Fraser Morrison (Fraser@macdonaldhenderson.co.uk).

In the meantime, stay safe.

Last updated: 10.37am, Wednesday 22nd April 2020

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