The Government has announced a package to support new companies that are not eligible for support through the existing Coronavirus schemes.
It has announced that it will match up to £250m of private investment and add £550m to an existing loan and grant scheme for smaller firms that focus on research and development.
Chancellor Rishi Sunak is keen to express the Government’s support of start-ups. They believe start-up businesses would help power the UK’s growth after the coronavirus crisis.
As many newly-founded companies lose money in their early years this makes them ineligible for the government’s emergency loan scheme. However, it should also be recognised that they are businesses that find it hard to attract investment as the risks are high.
The government is keen to ensure that the economic impact of the coronovirus does not kill off some of the UK’s fastest growing and most innovative companies.
How does a business qualify?
To qualify to receive Government money, a company must have raised £250,000 privately in the last five years. In addition to this any money put in by the Government must be matched by private investors.
If the money is not repaid, the government will take an ownership stake in the company.
Under the scheme, the government guarantees 80% of each of the loans, which are issued by banks.
If you wish to speak to a member of our team regarding how your start-up business might access funding through the Government’s Coronavirus Schem please contact us on via our website.