Many of our clients have been asking us for advice on the various government funding options available to them during the downturn. This post collates that advice and provides resources for how to access the various schemes.
This scheme sees the government match private investment into startups on a 1:1 basis up to a maximum of £5million, and a minimum of £125,000. The investment is not SEIS/EIS eligible so you would be most likely to receive this through a VC or other institutional investor. As a result, this scheme is most suitable for businesses who rely on equity investment for their cashflow. To be eligible, you must be an unlisted UK registered company that has previously raised at least £250,000 in the last five years.
Bounce Back Loans
These loans are suitable for smaller businesses with revenues typically less than £1million. The loan is worth up to 25% of a business’s turnover, with a maximum of £50,000. What’s significant about these loans however is that they are 100% Government guaranteed for the lenders, so in principle, it should allow lenders to provide these loans within a few days or faster.
The Coronavirus Business Interruption Loan Scheme is another government loan scheme, but this provides financing up to £5million. It’s available to UK businesses who have less than £45million annual turnover who can demonstrate that their revenues have been adversely affected by Coronavirus. Unlike the Bounce Back Loan scheme, the lenders are not fully guaranteed for these loans, so there will be a more extensive due diligence process in place when applying for them. It’s also worth noting that CBILS and Bounce Back Loans will have an impact on the amount of R&D tax credit you may receive. Find out more about that in our guide to CBILS & R&D Tax Credits.
Innovate UK Funding
Innovate UK are offering a wide variety of support packages for both historic recipients of Innovate UK grants & loans, as well as first-time claimants. They have identified £200million of fresh funding for repeat claimants and £550million for new claimants. They have also published a number of coronavirus research competitions.
They’ve provided a guide to navigating these various offerings on the government’s website which can be found here. There are more details of the various innovation competitions available on this government portal.