As part of their coronavirus response package, Innovate UK is offering up to £210 million in loans to small and medium enterprises (SMEs) that have a challenge in continuing a live Innovate UK project (Strand 1) or continuing the innovation and commercialisation activity from a project that finished in the last 36 months (Strand 2).This Innovation Continuity Loan may be suitable if you need funding of between £250,000 and £1,600,000. The loans will have a maximum term of 7 years. Full terms and conditions can be found here.
Innovate are planning to open at least one competition monthly from August 2020. The loans will remain available until funds are fully committed or 31st December 2020, whichever is the earlier.
Innovation continuity loans will have a maximum term of 7 years. Other terms and conditions will apply.
Innovation continuity loans are a form of state aid under the Covid-19 temporary framework for the UK.
Aid may be granted to undertakings that were not in difficulty (within the meaning of Article 2(18) of the General Block Exemption Regulation) on 31 December 2019, but that faced difficulties or entered in difficulty thereafter as a result of the COVID-19 outbreak.
The Temporary Framework has been extended to provide support to micro and small companies that were undertakings in difficulty before 31 December 2019. Companies are exempt from this test unless:
- They are in insolvency proceedings
- They have received rescue aid that has not been repaid
- They are subject to a restructuring plan under State aid rules
Written by Matt Wingrove and Laura Hankey