Scottish Government announces £38 million support package for early-stage businesses hit by coronavirus crisis
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A £38 million support package for innovative early-stage businesses whose routes to investment and growth have been hit by coronavirus has been announced by the Scottish Government.
It will offer three levels of support.
A total of £3 million will be allocated in grants of up to £50,000 plus advisor support for start-ups identified as having the most significant potential to grow and attract future investment.
A mix of grant and investment funding up to a maximum of £300,000 will also be available from a £25 million early stage growth challenge fund to help equity-backed businesses to continue innovating through the pandemic and bridge the gap to their next investment round.
Applications for the fund, managed by Scottish Enterprise, will open on Monday 20 July and close on Friday July 31.
There is also an additional £10 million 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.
Economy Secretary Fiona Hyslop also announced a £2.2 million fund for grassroots venues, following ongoing discussions with the Music Venue Trust. It follows on from last week’s targeted £10 million to support Scotland’s performing arts venues.
"Scotland’s entrepreneurs and innovators have always fuelled the nation’s economic growth so we must support them now to ensure that their energy and ideas can deliver good new jobs and help us plot a path to recovery," Ms Hyslop said.
"The creation and growth of businesses in exciting emerging sectors such as life sciences, digital technologies and space create high value jobs and accelerate international investment in Scotland.
"The economic impact of Covid-19 has been enormous, and the Scottish Government has so far spent more than £2.3 billion in support.
"Early stage businesses are not immune to this and have been impacted by a challenging investment market which restricts their ability to grow, innovate and compete internationally.
"This new package meets these challenges head-on, providing young and innovative businesses with the most comprehensive and generous package of support available anywhere in the UK.
"There are also a number of areas where immediate support is required, including grassroots venues, and I hope this additional £2.2 million funding will provide much-needed stability to the music industry for the coming months."
Steve Dunlop, chief executive of Scottish Enterprise, said the funding package was the result of insight gathered by the Scottish Government and Scotland’s economic development agencies from partners and companies operating in the early-stage high-growth market.
"This field is home to many promising companies whose innovative products and services are aligned with our vision of a sustainable and inclusive economy," he said.
"Pertinently, a considerable amount of them are immersed in work with the capacity to drastically improve the health and wellbeing of people the world over.
"We believe this additional funding from the Scottish Government will help remove the financial obstacles created by Covid-19 that threaten their growth.
"With our backing, we hope our early stage companies will fulfil their potential and bolster Scotland’s economic recovery while having a positive impact on businesses and individuals internationally."
Nick Stewart, Scottish co-ordinator for the Music Venue Trust, thanked the Scottish Government for its commitment to grassroots music venues.
"This funding will stabilise venues in the short term and prevent permanent closures, and we can begin to plan towards reopening every venue safely," he said.
Further information is available on findbusinesssupport.gov.scot.
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