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UK to Hand Innovative Firms £1.25bn amid Coronavirus Outbreak

Chancellor Rishi Sunak hands R&D start-ups and businesses £1.25bn to help power the growth of UK out of the crisis.

Source: Microsoft News

Rishi Sunak said the government wanted to help start-ups and other smaller firms recover from the COVID-19 crisis, in sectors from tech to life sciences.

There are two elements to the latest package to help businesses through the coronavirus crisis:

The first is a new £500m loan scheme for high-growth firms, called the Future Fund, to be launched in May in a 50/50 partnership with the British Business Bank.

UK companies which have previously raised at least £125,000 in equity investment, but which are not listed on the stock market, are eligible.

Businesses can access between £125,000 and £5m from the government – with the sum matched by the bank – though the loan would convert to equity if not repaid.

The rest of the money available, £750m, is “targeted support” for small and medium sized businesses focusing on research and development.

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