On 20th April 2020, the UK government announced a £1.25bn COVID-19 support package for innovative firms. The package includes measures to support high-growth firms and SMEs that focus on research and development.
Future Fund: support for high-growth firms
From May, high-growth firms can apply for investment from the £500m Future Fund. UK-based companies can apply for funding worth between £125,000 and £5m from the government, with private investors at least matching the government’s commitment.
These loans will automatically convert into equity stakes on the company’s next qualifying funding round, or, if unpaid, at the end of the loan.
To be eligible for investment under the Future Fund, 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 has committed £250m in funding towards the scheme and applications for investment will, initially, be open until the end of September. The scheme will be delivered in partnership with the British Business Bank.
Innovate UK grants and loans: support for research and development
Innovate UK, the UK’s national innovation agency, will be delivering a £750m grants and loans scheme for small and medium firms focusing on research and development.
Innovate UK will accelerate up to £200m of grant and loan payments to its existing 2,500 customers on an opt-in basis. A further £550m will be made available to increase support for existing customers.
For firms who do not currently receive Innovate UK funding, up to £175,000 of support will be offered to around 1,200 firms.
The first payments under this programme will be made by mid-May.
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