A loan to help bridge the gap between the time the money is spent and the payment of the grant.
Most of our customers use this to finance an Innovate UK grant, but we've also done loans against other BEIS incentives (e.g. NIA/NIC), Scottish Enterprise, European Space Agency grants, etc.
You are in receipt of a grant from a UK government body (national or local) or a supra-national organisation to which the UK is a subscriber (e.g. European Space Agency) and are based in the UK.
A Grant Loan is strictly there for the purpose of financing costs that are directly attributable to the grant funding. The proceeds cannot be used to finance any other part of your business.
There will be spending covenants tied to an Grant Loan where the business can only spend the money on things are eligible under the terms of the grant. We will take a fixed and floating charge over the assets of the business and we will usually ask to be the senior-most lender.
Timing & Size
We will only approve disbursement of funds once the grant has been approved and finalised.
We will fund up to 80% of grant amount, with strict repayments due as the grant is paid. As grants are typically quarterly, the loan will typically a quarterly rolling loan.
We can also help speed up that final approval by Innovate UK when if they are questioning your ability to fund the loan by providing a comfort letter to them that says we will fund the grant (subject to our own due diligence process).
Establishment Fees: 3%
Interest Rate: 15%
Duration: Typically 1 year, rolling quarterly