The Chancellor has announced support worth £1.25bn for UK start-ups and businesses driving research and development in some of the most dynamic sectors of the UK economy – ranging from tech to life sciences.
The Treasury and the Department for Business, Energy & Industrial Strategy (BEIS) the package consists of a £500m Future Fund investment for high-growth companies impacted by the crisis, made up of funding from government and the private sector.
The scheme is being delivered in partnership with the British Business Bank, and will be open until the end of September 2020
UK-registered companies that have raised at least £250,000 in equity investment the last five years will be eligible to receive loans of £125,000 to £5 million, provided they can find matching private investment.
The Government is also offering up to £750m in funding for “the most R&D intensive small and medium-size firms” and this is separate from the Future Fund.
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.”
Will Shu, CEO and founder of Deliveroo, said: “It’s great news that the Chancellor is supporting British start-ups that are innovating and will be so vital to the UK economy in the months and years ahead with such a practical and thoughtful scheme.”
Further details provided in an accompanying PDF state that if the company is a member of a corporate group, only the ultimate parent company (if it is a UK-registered company) will be eligible to receive the loan.
An eligible company shall also be subject to customer fraud, money laundering and KYC checks prior to any loan being made.