Government Announces £250m 'Future Fund' to protect start-ups during COVID-19 pandemic

funding

The Government has revealed plans for a new £250m ‘Future Fund’ to ensure that the UK’s start-up sector remains viable during the coronavirus pandemic. The Fund will be run by the British Business Bank and eligible businesses will have to be trading for five years.

 

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 (CBILS).

 

Eligibility criteria

  • business is based in the UK;
  • business must attract equivalent match funding from third party private investors and institutions;
  • business has previously raised at least £250,000 in equity investment from third party investors in the last five years.

 

The fund will officially open in May, full eligibility criteria and details of the application process will be published in due course.

 

More information can be found here.