The government has announced another support package for businesses amidst the global coronavirus pandemic: The Future Fund.
UK businesses that are driving innovation and development will get a helping hand, in the form of a £1.25billion government support package.
Powering Our Growth Out Of This Crisis
Rishi Sunak revealed that this support package would help to protect firms in the UK that are driving innovation.
The Chancellor of the Exchequer, said:
“Britain is a global leader when it comes to innovation. The start-ups and businesses driving research & development are one of our great economic strengths. They will help power our growth out of the coronavirus crisis.”
This scheme shows that the government is starting to plan for life after the lockdown, and working out strategies to boost the economy once things get ‘back to normal’.
The Future Fund For High Growth Companies
A £500m Future Fund has been announced.
It’s designed to ensure high-growth companies across the UK will keep receiving the investment they need to continue through this crisis.
The funding will be available in May, until the end of September. It will provide UK-based companies with between £125,000 and £5million worth of funding from the government.
Private investors will also, at least, match the government’s payments.
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 5 years.
There will also be £750million worth of targeted support made available for small and medium sized businesses focusing on research and development.
Extra Funding Through Innovate UK
The government is also working closely with Innovate UK, offering up to £200 million worth of grants and loan payments for it’s 2,500 existing Innovate UK customers, providing they opt-in.
An extra 550million will also be available to increase support for existing customers, and £175,000 will be offered to around 1,200 firms who are not currently receiving Innovate UK funding.
Regarding the schemes Rishi Sunak reiterated,
“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.”
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