The government has unveiled an initial £250m Future Fund scheme, issuing convertible loans to help startups struggling due to the coronavirus outbreak. This is part of the £500m pledged investment for high-growth firms, and in addition to another £750m for SMEs focused on R&D, totals £1.25bn government support package.
According to the Chancellor, “Our start-ups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis.”
The scheme is planned to go live in 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 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.
The headline terms setting out the main features expected to apply to the loans can be found here.
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.
How to apply
The Future Fund will launch in May 2020. Further details about this scheme will be published shortly.
To discuss your funding requirements and to explore your options, get in touch with Ascendis Funding Solutions today.