May 20, 2020
The Future Fund, announced by the Chancellor of the Exchequer on 20 April, is now open for applications from today, Wednesday 20 May. The Future Fund will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
These 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.
How it works:
Open for applications from Wednesday 20th May.
Scheme operates on a commercial basis to deliver an initial commitment of £250m of new government funding.
Financing will be unlocked by additional third-party investment on a match funded basis.
Applications submitted via an online platform based on a set of standard terms and eligibility criteria.
Companies must be UK-incorporated and if part of a corporate group, only the parent company is eligible.
Companies in receipt of the loans will be required to have previously raised at least £250k in equity investment from third party investors in the last five years.
Only eligible companies that can attract at least 50% of third-party investment will receive funding.
Companies cannot have any of their shares traded on a regulated market, multilateral trading facility or other listing venue.
The company must have been incorporated on or before 31st December 2019.
At least one of the following must be true for the company:
Half or more employees are UK based;
Half or more revenues are from UK sales.
read more about the future fund here-https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/