UK will allocate $ 1.5 billion to help startups

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Country officials will allocate more than $ 1.5 billion to support trade

The UK will support startups. Photo: makeenglandgrandagain.com

The UK is preparing a $ 1.25 billion ($ 1.54 billion) aid package for startups affected by the coronovirus epidemic. The financial support includes a £ 500 million investment consisting of funds from government and private investors, which will be transferred to fast growing companies. Small and medium-sized businesses engaged in research and development will receive £ 750 million in grants and loans.

According to Rishi Sunak, Finance Minister of the United Kingdom, financial support will be provided to all companies from the dynamically developing sector of the economy.


Sage craze
UK Treasury Secretary

It is noted that companies will receive 125 thousand to 5 million pounds from the government, as well as money from private investors. Such loans will be converted into net assets of companies that cannot repay loans.

Registered startups in the UK and raised at least £ 250,000 (around $ 300,000) from outside investors over the past five years are eligible for financial support.

Reportedly, the aid program was developed based on the recommendations of the US Silicon Valley Bank. According to the head of AMIA and the president of the British representative office of SVB Erin Platz, startups are “important” to the country. “They provide innovative solutions and improvements in healthcare, finance, communications, work and more,” said Platz.

Recall that in relation to the British exit from the European Union, the coordinator of negotiations on further cooperation between the country and the European Union stated that Europe does not intend to provide London with unlimited and unlimited equality in the financial services sector. Equivalence governance means that British financial companies will gain access to EU financial markets without the need to open local subsidiaries. However, he said that the EU, if possible, would provide the UK with a uniformity regime in some financial sectors, as with Canada, the USA and Japan.

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Earlier we wrote that European countries are developing a plan to save startups. In particular, France launched a 4 billion euro ($ 4.4 billion) liquidity support scheme to support the cash flow of French startups. The package includes short-term refinancing, investment in pre-planned rounds and early payment of certain tax benefits.

The German government said this week that it would provide financial assistance of 2 billion euros to help young technology enterprises stay away. The government is also considering a 10 billion euro long-term fund for large startups.

Read:
Quarantine and Economics: What Business Expects
How can businesses avoid the COVID-19 crisis
Startup Mode: How Coronavirus Affects MFIs

According to the material finextra.com


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