UK Government Announces £1.25 Billion Support Package for Innovative Companies

On Monday 20 April 2020, the UK Government announced a support package of £1.25 billion aimed at driving innovation and development during the COVID‑19 outbreak. The package has been divided as follows:

• £500 million co-investment fund (Future Fund) which will provide convertible loans to companies with a turnover ranging from £125,000 to £5 million, subject to at least equal match funding from private investors. The scheme will be delivered in partnership with the British Business Bank and is due to go live by the 1st of May.

• £750 million of targeted support tor SMEs focusing on research and development.

The exact details of the schemes are still to be announced but the research and development support appears to be a fantastic opportunity for R&D performing SMEs to access funding.

The estimated breakdown of the £750 million fund is as follows:

• £200 million of accelerated funding for existing companies who already have grant and loan contracts with Innovate UK:

  • Current recipients will be contacted directly by Innovate UK and asked to opt-in

  • Likely to be advance payments on already agreed grants and loans.

• £300 million of continuity grants and innovation loans for existing Innovate UK clients:

  • Application mechanism still to be defined.

• £250 million in new grant funding for innovators who do not currently have Innovate UK funding:

  • £175,000 in grant support per company

  • Fast turn-around competitions (possibly four weeks from submission to decision).

We expect to have more detail on how to apply within the next three weeks.

To discuss this and other funding opportunities, contact Simon Day: simon.day@markel.com or 0114 236 4457.

Tagged Grant funding Grant funding Incentives and Reliefs COVID-19