How to apply for the Coronavirus Future Fund
Launching in May 2020, the scheme offers convertible loans of between £125,000 and £5m to ‘innovative’ companies facing difficulty
Launching in May 2020, the Coronavirus Future Fund will provide government loans of between £125,000 and £5m to ‘innovative’ companies that are facing financial difficulties as a result of the pandemic.
Backed by the British Business Bank, an initial sum of £250m will be made available for the scheme.
The government says the Future Fund has been designed for companies that rely on equity investment and that are unable to access the Coronavirus Business Interruption Loan.
It forms part of a new £1.25bn support package for firms operating in the most dynamic sectors of the UK economy, including tech and life sciences. Another £750m will be made available for small businesses involved in research and development.
Chancellor Rishi Sunak said: “Britain is a global leader when it comes to innovation. Our startups and businesses driving research and development are one of our great economic strengths, and will help power our growth out of the coronavirus crisis.
“This new, world-leading fund will mean they can access the capital they need at this difficult time, ensuring dynamic, fast-growing firms across all sectors will be able to continue to.”
Who is eligible for the Coronavirus Future Fund?
Currently, the eligibility criteria for the scheme are:
- You must be a UK-based business
- You must be able to attract the equivalent amount of funding from third-party private investors and institutions
- You must previously have raised at least £250,000 in equity investment during the last five years
Additionally, any business that successfully raises money from the scheme must use the funding solely as working capital.
That means you can’t use it to:
- Repay any borrowed money
- Make any dividends or bonus payments to staff, management, shareholders or consultants
- Or to pay any advisory or placement fees or bonuses to external advisers
Full terms and eligibility criteria will be published soon.
How to apply for the Coronavirus Future fund
The scheme is due to be open between May and September 2020. More details about the application process will be released closer to the time.
Upon application, your business will be subjected to customer fraud, money laundering, and KYC checks.
We’ll make sure to update this page with any new information as soon as it’s available.
You can find a full breakdown of the financial support announced by the government in response to the Covid-19 outbreak on our Coronavirus small business advice page.