The Government has unveiled plans for a new “Future Fund”, this scheme is designed to ensure innovative companies remain viable during the Coronavirus pandemic.

To be eligible for a loan from the Government under this scheme, a business must be an unlisted UK registered company and have a substantive economic presence in the UK.

  • This scheme will issue convertible loans between £125,000 to £5 million,
  • Businesses should be able to attract the equivalent match funding from third-party private investors and institutions;
  • Businesses should have previously raised at least £250,000 in equity investment from third-party investors in the last 5 years; and
  • Businesses will have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment.
How to apply
  • The Government scheme, which will be developed in partnership with the British Business Bank, should open for applications in May 2020;
  • It is intended that the scheme will initially be open until the end of September 2020; and
  • Further details about this scheme will be published shortly.

The draft headline terms issued by the Government can be found here.