This new Scottish Government fund is managed by the Scottish Investment Bank, the investment arm of Scottish Enterprise. It’s designed to support early-stage, high-growth, innovative Scottish companies who have been negatively affected by the COVID-19 pandemic. It’s aimed at companies where COVID-19 has had a clear impact on revenue, working capital costs, or access to equity investment, resulting in a cash shortfall, a diversion of resources away from growth activities or a delay in achievement of development or investor milestones. It can provide from £50,000 to £300,000 per company.
The funding is a combination of convertible loan and grant. A convertible loan is a type of loan funding that can either be repaid with the associated interest or converted into equity (meaning Scottish Enterprise would own shares in your company). The grant element does not need to be repaid, and will only make up a maximum of 20% (if any) of any funding awarded.
This fund is open for applications from 20 July 2020 until 5pm on 31 July 2020.
