A government package of £1.25 billion has been announced in a bid to help support business start-ups and drive research during the Covid-19 pandemic.
Rishi Sunak
UK Chancellor of the Exchequer, Rishi Sunak unveiled the plans to aid businesses on Monday.
Chancellor Rishi Sunak announced the plan on Monday, and the package includes Future Fund, a £500 million loan scheme for high-growth firms and a £750 million support grant for SMEs engaged in research and development.
The Future Fund will provide UK-based companies with a loan of between £125,000 and £5 million, with equal funding coming in from private investors. These loans will automatically convert to equity on the company’s next qualifying round unless it is repaid within three years.
Companies must have raised at least £250,000 from private investors to qualify for the scheme.
The ministers see fast-growing companies as a backbone of technology development and as ground zero for funding assistance during the crisis, amid concerns at the loss of potentially groundbreaking technology.
In a statement made after the announcement, business secretary, Alok Sharmer, said: “The UK is a world leader in innovation and at this hugely challenging time, we know that young, fast-growing firms require tailored support to see them through. This wide-ranging package delivers important help that will protect some of the most dynamic sectors of our economy.”
The chancellor himself said the package would protect some of the most dynamic sectors of the British economy so they can continue to grow for the sake of crucial development to the UK’s technology scene.
He said: “There are many business owners out there right now who are nervous about the future, perhaps a little disorientated with all that’s happening, and wondering what should they do next.
“This is the perfect opportunity to get funding that you can invest in innovation, and those that grab it with both hands will come out on top.”
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