What is Grant Advance Funding?
Companies that are awarded Innovation Grants can often wait for up to 5 months or longer from the moment they start incurring expenditure to when the Grant Award body pays out. SPRK bridges this gap helping companies reduce the need to raise expensive equity to fund their Grant projects.
What are the benefits for Grant Advance Funding?
Innovation Grant Advance Funding from SPRK is a non-dilutive source of capital that can reduce the capital requirements for a typical Innovate UK project by more that 60%, SPRK does this with a product called a SPRK Grant Advance.
Am I eligible for an Innovation Grant loan?
If you are in the process of being awarded or have been awarded an Innovation Grant please contact the team at SPRK to understand how we can help your businsess.
Can SPRK help through the Grant application process?
SPRK does not advise on Grant applications, we can however discuss the financing aspects of your Grant award ahead of, during or after your Grant submission.
How long does it take to apply for an Grant Advance Funding?
Completing our SPRK Grant Portal is quick and easy, the SPRK team is also here to support you through your application. Applications can be done in as little as 15 minutes.
How much will SPRK lend against my Innovation Grant?
SPRK typically advances up to 80% of each quarter / milestone on the first day of the period. This means you have the cash in your bank to fund your expenditure ahead of incurring it.
How much can I borrow?
SPRK lends from £50,000 to £5m+.
What are SPRK 's criteria for applying for Grant Advance Funding?
Companies applying for a SPRK Grant Advance Funding must demonstrate the ability to fund any grant costs that are not covered by the SPRK Grant Advance.
What sectors does SPRK lend to?
SPRK focusses its lending on the sectors that drive UK innovation. We do not lend to Construction Companies, Money Lending businesses and those where there may be a moral hazard from lending (such as Weapons Manufacturing / Sales or the Adult Entertainment businesses).
What security does SPRK take?
SPRK takes a first charge fixed and floating debenture over the business.
What happens if I already have an existing charge on my business?
SPRK will request a first charge over the business and if this is not available we can discuss this with you on a case by case basis.
Do you take Personal Guarantees?
No, SPRK does not typically take PGs. Our loans are secured against the company.
Does my business need to be making a profit to be eligible?
No, SPRK typically lends to loss making businesses – many of which are also pre-revenue.
How long does it take post approval to fund my Grant Advance Funding?
Post approval we look to issue loan agreements, borrowers have 72 hours to sign these agreements and funding is typically within 24-48hrs of signing.
Do I need to make interest payments on my Grant Advance Loan?
Interest is calculated on your SPRK Grant Advance and added to the loan principal. There are no interest payments during the term of loan, interest is settled at the end of the loan.
Is there a minimum term on my Grant Advance Loan?
SPRK has a minimum term of 3 months on any Grant Advance loan.
How does repayment work?
Companies are required to settle each SPRK Grant Advance with the receipts from their Grant Award payments within 48hrs of receipt of payment.
Can I pre-pay my Grant Advance Loan?
Yes, you can pre-pay your Grant Advance at any time without penalties.
What happens if my Grant payment does not cover the Grant Advance loan?
SPRK works with borrowers to ensure that this situation does not occur. However, in circumstances where the grant payment is reduced or declined the company is still resonsible for settling the loan. We will work with borrowers on a case by case basis if this occurs.