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<p>Graphene has the capability to become one of the sectors that will power our economic
growth – and Versarien is at a crucial phase in its development as it strives to become
one of the UK’s leading players in the production of graphene. Materials such a graphene
can also provide a valuable contribution towards the Government’s Net Zero targets
and has the potential to contribute significantly to a number of national infrastructure
projects. Versarien’s G-SCALE project, which this loan will fund, will allow the firm
to carry out later stage R&D to enable it to supply the market with commercial
quantities of graphene-enhanced materials.</p><p>Similar to many companies, Versarien
seeks investment from a number of sources, including private funding. Innovate UK
has a good understanding of Versarien’s business and has previously awarded the company
several grants to support its development. Innovate’s loan scheme was set up to broaden
the range of innovation finance support available to businesses, so they can access
funding at all stages of innovation.</p><p>In order to be eligible, a business needs
to show that it can afford the interest and repayments on the loan and that they cannot
obtain finance from other sources such as banks and equity investors for a particular
project. It is on this basis the loan was made.</p><p>Indeed, this loan was made on
Innovate’s usual terms, that is an interest rate of 7.4% per annum with half of the
interest deferred until the repayment period commences. Loan repayments will start
45 months after drawdown and be paid over a subsequent period of 36 months.</p><p>The
loan award was made after Innovate UK’s rigorous process of innovation assessment
and credit evaluation – the same level of scrutiny and assessment that accompanies
any loan award that Innovate UK makes.</p><p>The assessment process for awarding the
loan was compatible with the key principles set out in the guidance on Managing Public
Money.</p>
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