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NEW ANGLIA SCALE UP NEWS

Keep updated with the latest high growth news and what we’ve been up to at Scale Up New Anglia

The Scaleup Institute Scales Up its Response to the Covid-19 Crisis

SUI

It’s been another turbulent week in the global Covid-19 crisis. The Scale Up Institute (SUI) is continuing to work closely with the Government, local areas and across the private sector to help develop response packages and solutions for our UK scaleups. Since the get-go, the SUI has been alert to the issues for scaling businesses seeking support from CBILS and the Commercial paper Bank of England Scheme. This has involved them working closely with their colleagues, the British Business Bank, InnovateUK and central government to address the issues at hand. SUI has also fed into crucial challenges facing scaleup boards. They are therefore pleased to see the:

  • The missing gap for scaleups of £45m+ being closed by the creation of a loan scheme (CLBILS) for businesses with turnover between £45-500m. This means that many of our larger scaleups will now have access to COVID funding options.

 

  • Revisions to the Coronavirus Business Interruption Loan Scheme (CBILS) – the fact this removes the need for prior refusal of a commercial loan and revision to personal guarantees is helpful. This should increase, to an extent, the number of scaling businesses who will be eligible for the scheme.

 

  • Launch of Innovate UK £20m Grant Scheme for ambitious technologies to build UK resilience to the long-term impact of coronavirus and similar future situations. Grants of up to £50,000 will be available to technology and research-focused businesses to develop new ways of working and help build resilience in industries such as delivery services, food manufacturing, retail and transport, as well as support people at home in circumstances like those during the coronavirus outbreak from education to caring for relatives.

 

  • New insolvency measures announced. This prevents businesses who are unable to meet their debts due to the impact of coronavirus from being forced to file for bankruptcy. It is vital that directors of scaleups can keep their businesses going in the face of massive market uncertainties and without the threat of personal liability. The temporary suspension of the wrongful trading provisions takes effect retrospectively from 1 March 2020 for three months.

 

  • However, we are clear the job is not yet done – scaling businesses who are on the cutting-edge of innovation across a range of sectors and communities, including those helping us find Covid-19 solutions – are often pre-revenue and/or loss-making and as such will not be able to access funding via these schemes because debt is an inappropriate financial instrument for them.

However we are clear the job is not yet done – scaling businesses who are on the cutting-edge of innovation across a range of sectors and communities, including those helping us find Covid-19 solutions – are often pre-revenue and/or loss-making and as such will not be able to access funding via these schemes because debt is an inappropriate financial instrument for them.

 

The Scale Up Institute is continuing to work closely with the finance community and Government agencies on solutions to address this gap and to unleash vital long-term liquidity into the market which is tightening fast across the early-stage equity and venture finance communities. Providing vital financial runway for these scaleups is their number one priority at present. It is a rapidly developing landscape and all are working at speed to foster solutions.

 

The SUI is continuing to add new resources and links to our Covid-19 information hub. Across the scaleup ecosystem, fresh support is being provided by their partners such as Sage, Vistage UK and Aston University and existing offers are being amplified with regular webinars from partners such as Smith & Williamson and the BioIndustry Association.

 

And they do have reason to remain heartened – over the past two weeks, finnCap has announced successful equity fundraisings of £5m for PCI Pal (PCIP), which provides secure payment solutions and is building up its North American business, and £14m for AIM-listed Synairgen to fund a phase II clinical trial of its COVID-19 coronavirus therapy. Manchester’s health innovation campus Citylabs, which hosted our second Driving Economic Growth economic development course has been given the green light to expand its site in a collaboration with Manchester Science Partnerships (MSP) and Manchester University NHS Foundation Trust (MFT).

 

There has never been a more critical time for strengthening the UK life sciences sector and to facilitate collaboration between scale-ups and the NHS.

 

See the information they have put together for scaling businesses in their Covid-19 Scale Up Hub support via this link: https://www.scaleupinstitute.org.uk/coronavirus-covid-19/

 

The SUI salute those in both fields fighting the coronavirus pandemic.

 

Stay Well. Stay Safe from the Scale Up Institute