Coronavirus Future Fund
Updated 20 May 2020
This is a confusing time for individuals and businesses alike. The coronavirus pandemic has brought a wave of economic uncertainty across the world.
While some countries are starting to open back up, it’s too early to tell if economies around the world will make a roaring comeback.
In the UK, the government has rolled out several programmes to help businesses stay alive during the crisis. One of these schemes is the Future Fund programme.
Keep reading to discover what the Future Fund is and how to apply for the scheme.
What Is the Future Fund?
There’s no question that innovation is the key to bringing back the economy once the threat of coronavirus subsides.
Many businesses are facing the threat of closure due to the lack of economic activity. Many of these businesses are innovative start-ups. Without these businesses, the British economy could be set back years.
The UK Future Fund is aimed to prevent that from happening. The Fund Fund is a loan scheme that is targeted toward start-up businesses. It’s a partnership between the government and the British Business Bank.
There is over £500 million to assist venture-backed businesses that have had a steep decline in revenue due to the pandemic.
The Future Fund provides businesses with loans between £125,000 and £5 million. These funds have to be matched by third-party investors.
The funds must be used for expenses such as operations expenses. It can’t be used to pay off debts or pay bonuses. The unique feature of the loan is that the loan will convert to equity at your next round of funding.
It is scheduled to launch in May 2020.
How to Qualify for the Future Fund
How does a business qualify for the Future Fund? As of this writing, the complete guidelines have yet to be published. Here’s what is known so far.
The business must have a “substantive presence” in the UK. What constitutes a substantive presence? A company that is based elsewhere in the world would not be eligible.
The tech sector is one of the fastest-growing sectors in the UK and employs close to 3 million people. The scheme exists to protect UK companies and jobs.
The business has to have raised at least £250,000 in the last 5 years.
The business must be able to raise matching funds from third-party investors.
Other Financial Support for the Start Up Sector
You may learn that this type of scheme isn’t a great fit for your business, or you can’t qualify because you are unable to raise the matching funds from outside investors.
There are other programmes that you may be able to qualify for, such as grants through Innovate UK. The government is making over £750 million in grants and loans available to organisations with a research and development focus.
Government support is changing as the crisis evolves. You should stay up to date on this scheme and other forms of financial support from the government.
Apply for the Coronavirus Future Fund
The Coronavirus Future Fund is an ambitious government scheme that allows high-growth companies to navigate economic uncertainty and come out stronger than before.
Do you want to know if the Future Fund is right for you or need assistance with your application?
Contact us today.
How KG Accountants can help
- Help and assist you to fully comply with the government guidelines on managing the risk of Covid19.
- Forecasting – both for your own planning and for the business loan applications.
- Help prepare simple cash flow monitoring tool to ensure your road to recovery is as smooth as possible.
- How to set up a payment plan with HMRC.
- Businesses who have negotiated a rent holiday.
- Our regular blog on how you can get funding during this pandemic.
- Everything you need to know on the Coronavirus Job Retention Scheme (CJRS) and furloughing.
- Managing your personal finances – our financial planning team’s top tips.
- If there’s anything else you need help with not listed above, please ask, and we’ll find a way.
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