£38 Million Support Package For High Growth Companies
Nearly A Third Of Inverclyde Firms Fear Job Losses And Face Continued Cashflow Challenges
10/07/2020
Workplace Guidance For Micro And Small Businesses
11/07/2020£38 Million Support Package For High Growth Companies
Fiona Hyslop
A comprehensive package of support for innovative early-stage businesses whose routes to investment and growth have been impacted by COVID-19 has been announced by Economy Secretary Fiona Hyslop.
The £38m package, managed by Scottish Enterprise, includes three levels of support to meet the needs of the most promising businesses at different stages of early growth:
- £3m allocated as grants of up to £50k plus advisor support for start-ups identified as having the most significant potential to grow and attract future investment;
- A competitive £25m Early Stage Growth Challenge Fund to provide successful applicants with a mix of grant and investment funding up to a maximum of £300k;
- This support will help equity-backed businesses to continue innovating through the pandemic and bridge the gap to their next investment round. The fund will open to applications on Monday 20 July; and
- An additional £10m for Scottish Enterprise’s existing Scottish Investment Bank co-investment funds to help stimulate private investment and support businesses that need more significant levels of funding to grow rapidly.
Ms Hyslop also announced a £2.2 million fund for grassroots venues, following ongoing discussions with the Music Venue Trust. The new fund follows on from last week’s targeted £10 million to support Scotland’s performing arts venues.
Further information is available on the FindBusinessSupport website with the link below. Full details of the fund for grassroots venues will be available shortly.
The Early Stage Growth Challenge Fund will not be delivered on a first-come, first-served basis. It is competitive funding where all eligible applications will be assessed and graded with the highest-graded applicants receiving funding. Applications will be assessed by Scottish Enterprise with support from private sector investor panels.
Successful awards will receive a convertible loan (i.e. a loan that can be converted to an equity stake in the business) and a grant (subject to eligible costs) for up to 20% of the total award.
Applications open on Monday 20 July and close on Friday 31 July.
The £3m grant and advice fund are targeted at pre-seed businesses (i.e. businesses that are not yet ready to receive investment).
