New fund launched to help coronavirus recovery
The Hub News Team | 20.5.20
A new government-backed fund which could help innovative businesses as they fight back from the coronavirus crisis has been launched today.
The Future Fund will provide government loans ranging from £125,000 to £5 million to UK-based companies, subject to at least equal match funding from private investors.
The convertible loans may be a suitable option for businesses that typically rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.
The Future Fund was developed by the government and is being delivered by the British Business Bank (BBB).
A spokesman for the BBB said: "The Future Fund issues convertible loans to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by Covid-19.
"The scheme, will help these companies through the current period of economic disruption and the recovery, so they are able to continue their growth trajectory and reach their full economic potential."
The Government has made £250 million available for the Future Fund, and will keep this amount under review. The scheme will remain open for applications until the end of September 2020.
Your business is eligible if:
• it is UK-incorporated. If your business is part of a corporate group, only the parent company is eligible
• it has raised at least £250,000 in equity investment from third-party investors in the last 5 years
• none of its shares are traded on a regulated market, multilateral trading facility or other listing venue
• it was incorporated on or before 31 December 2019
• at least one of the following is true:
◦ half or more employees are UK-based
◦ half or more revenues are from UK sales
For more details of the Future Fund visit https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/