For all our information around COVID-19 visit www.frenchduncan.co.uk/covid-19.
Early Stage Growth Challenge Fund
What is it?
This new fund, managed by the Scottish Investment Bank and is aimed at providing support (£50,000 - £300,000) to early-stage, high-growth, innovative Scottish companies (Small and Micro-Enterprises only i.e. 2-49 employees) who have been negatively affected by the COVID-19 pandemic. The funding is a combination of convertible loan and grant (which can make up a maximum of 20% of any funding awarded). The convertible loans have a term of 36 months and attract interest at 8% (interest free for the first 12 months). You must either repay the convertible loan with accrued interest (at 8%), or convert it into equity - you’ll need the agreement of SE to do either. Full details of the Fund are available by clicking here.
Who can apply?
Potential applicants should be focused on innovation, R&D and intellectual property in sectors such as fintech, life sciences, space, green tech, digital and data, and artificial intelligence.
Amongst a number of criteria, applicants must:
How does it operate?
This is a competitive funding call open for applications until 5pm on 31 July 2020. This means funding is not awarded on a first-come-first-served basis. Those applicants judged to have the most to contribute to Scotland’s economic recovery will be successful. Therefore, not all eligible companies will secure funding.
Should I apply?
This a welcome intervention for the Scottish Investment Bank at this time. However, it is important to highlight that it is not appropriate for a large number of companies. At French Duncan however, we would be delighted to assist you in the application process but we would encourage you to carefully read the criteria and information requirements outlined in the announcement.
You can contact the French Duncan Corporate Advisory Team for further advice below:
|Click here to see Graeme's profile and contact details.|
Other COVID-19 Information:
For all our help, support and information around COVID-19 / Coronavirus visit www.frenchduncan.co.uk/covid-19, where you can link to articles deferring HMRC payments, tax and business rates, debt assistance & restructuring and much more.