Cherilyn Mackrory, Member of Parliament for Truro and Falmouth, has welcomed the announcement by Chancellor Rishi Sunak today of a new £1.25 billion coronavirus package to protect firms driving innovation in UK
The package includes a £500 million investment fund for high-growth companies impacted by the crisis, made up of funding from government and the private sector.
SMEs focusing on research and development will also benefit from £750 million of grants and loans.
Cherilyn said:
“I am delighted to see this targeted and tailored help to ensure firms in some of the most dynamic sectors of the UK economy – ranging from tech to life sciences – are protected through the crisis so they can continue to develop innovative new products and help power UK growth.”
“With hi tech, high skilled companies increasingly operating out of Truro and Falmouth, often in conjunction with our wonderful university, I am pleased to see this funding available to allow them to continue to innovate through this difficult time.”
Chancellor of the Exchequer Rishi Sunak, said:
“Britain is a global leader when it comes to innovation. Our start-ups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis.”
“This new, world-leading fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to create new ideas and spread prosperity.”
The £500 million Future Fund has been designed to ensure high-growth companies across the UK receive the investment they need to continue during the crisis.
Delivered in partnership with the British Business Bank and launching in May, the fund will provide UK-based companies with between £125,000 and £5 million from the government, with private investors at least matching the government commitment. These loans will automatically convert into equity on the company’s next qualifying funding round, or at the end of the loan if they are not repaid. To be eligible, a business must be an unlisted UK registered company that has previously raised at least £250,000 in equity investment from third party investors in the last five years.
The government is committing an initial £250 million in funding towards the scheme, which will initially be open until the end of September. The scale of the fund will be kept under review.