The £500 million fund aimed at innovative and high-growth British businesses opened for applications on 20 May 2020. It will help such businesses secure investment required to get them through the COVID-19 pandemic.
On 20 April 2020, the Government announced a new scheme which would make available convertible loans to innovative companies facing financial difficulties as a result of COVID-19 (the “Future Fund”). The Government loans, ranging from £125,000 to £5,000,000 will be provided to private UK-based companies meeting certain eligibility criteria, subject to their being able to obtain at least equal match funding from private investors. The Future Fund will be run in partnership with the British Business Bank and may provide a useful source of funding to companies which are unable to access the COVID-19 Business Interruption Loan Scheme or COVID-19 Corporate Financing Facility. It will remain open for applications until the end of September 2020.
The Government will also amend the rules of the Enterprise Investment Scheme to protect Future Fund investors from losing tax relief on their previous investments made prior to any investment through the Future Fund.
The Future Fund is a signatory to the Treasury’s Investing in Women Code which commits firms to improving access of female entrepreneurs to tools, resources and finance.
If you would like to discuss further or enquire about advice on the Future Fund and whether your company would be eligible, please call one of the Knights' Corporate team.