New Future Fund to support innovative UK Businesses
April 23, 2020
On 20th April 2020 the Chancellor of the Exchequer announced he is to establish a new Future Fund to support the UK’s innovative businesses currently affected by Covid-19.
These businesses have been unable to access other government business support programmes, because they are either pre-revenue or pre-profit and typically rely on equity investment.
The scheme will deliver an initial commitment of £250m of new government funding which will be unlocked by private investment on a match funded basis. The government scheme, which will be developed in partnership with the British Business Bank with the intention of launching for applications in May, will initially be open until the end of September. Over the coming weeks the Bank will work with government on the details on how the Future Fund will operate and how to apply for the scheme.
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 rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.
The scheme will be delivered in partnership with the British Business Bank.
You’re eligible if your business:
is based in the UK
can attract the equivalent match funding from third-party private investors and institutions
has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years
Full eligibility criteria will be published shortly.