Blog Post
Coronavirus Future Fund
April 20, 2020
For innovative companies which are facing financing difficulties due to the coronavirus outbreak
It has now been confirmed that HMRC will soon be introducing a scheme for Startups facing financing difficulties following the outbreak of Coronavirus.
The Future Fund will provide government loans starting from £125,000 to up to £5 million, with the scheme set to launch in May 2020.
Eligibility will be based on the following:
- Your business is an unlisted UK registered company
- Your business can attract the equivalent match funding from third-party private investors/institutions
- Your business has previously raised at least £250,000 in equity investment from third-party investors in the last 5 years
Caveats to be aware of:
- The funding must be used for working capital only and not to repay any other borrowings, pay out dividends or bonus payments to staff
- The Future Fund is considered a convertible loan which will mature after 36 months
- The Government shall receive a minimum of 8% per annum (non-compounding) interest to be paid on maturity of the loan
If you would like to register your interest in this, please do get in touch and we can discuss your options as soon as further guidance is released by HMRC.
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