The £250m Future Fund, announced by the Chancellor of the Exchequer last month, is now open for applications. Aimed at innovative businesses struggling with the impact of COVID-19, the fund offers a lifeline for those who can qualify for support.
What’s the fund for?
The fund issues convertible loans to ‘innovative UK companies with good potential’ that are essential in ensuring the UK retains its world leading position in science, innovation and technology. These companies typically rely on equity investment and are currently affected by Covid-19.
Until now these companies have been unable to access other government business support programmes because they are either pre-revenue or pre-profit. The financing supports companies facing a significantly extended length of time between funding rounds, due to the impact of the current economic situation.
Developed by government and delivered by the British Business Bank, the Future Fund will help these companies through the current period of economic disruption and recovery, so they are able to continue their growth trajectory and reach their full economic potential.
How it works:
- open for applications from Wednesday 20th May
- scheme operates on a commercial basis to deliver an initial commitment of £250m of new government funding
- financing will be unlocked by additional third-party investment on a match funded basis
- applications submitted via an online platform based on a set of standard terms and eligibility criteria
Is your business eligible?
There are a number of specific conditions to meet. For example, companies must be UK-incorporated and if part of a corporate group, only the parent company is would qualify, so it’s best to thoroughly check the eligibility criteria before applying.
For more information on the Future Fund eligibility criteria and applications process, click here.