Future Fund
launches to give start-ups coronavirus support
The government
has launched its Future Fund package, which aims to support start-up businesses
not eligible for other coronavirus (COVID-19) rescue measures.
The Future Fund
offers government loans of between 125,000 pounds and 5 million pounds to UK-incorporated
companies, provided private investors at least match the funding supplied by
the state.
The package is
aimed at innovative early stage companies not eligible for existing COVID-19
support, and overall the fund will match up to 250 million pounds of private
investment. Chancellor Rishi Sunak told MPs that he would be 'more than happy'
to increase the funding available should the scheme prove popular.
The Future Fund is administered by the government-backed British Business Bank
(BBB). The loans can be repaid or converted into discounted equity if they are
not - making the government a direct shareholder in UK start-ups should the
latter occur.
There is no requirement to value the company, and when companies and investors
have completed an application through the BBB portal, they should receive funds
in an estimated two weeks. The fund is currently due to run until at least the
end of September.
More guidance
on the Future Fund, including eligibility criteria, can be found here.