A new scheme, due to launch next month, will issue convertible loans between £125,000 to £5 million to innovative companies which are facing financing difficulties due to the coronavirus outbreak.
Government launches Future Fund for innovative companies
The Future Fund, announced today, will provide government loans to UK-based companies ranging from £125,000 to £5 million, subject to at least equal match funding from private investors.
These convertible loans may be a suitable option for businesses that rely on equity investment and are unable to access the Coronavirus Business Interruption Loan Scheme.
The scheme will be delivered in partnership with the British Business Bank.
John Gourd, Cambridge Network's CEO, comments: “With such a strong representation of start-up and scale-up technology companies in the Cambridge area, this bold new initiative will be well received, once the final eligibility details are known. These companies are central to the future of the Cambridge Cluster and have, over the past few weeks, shown their value as they have stepped up to address some of the challenges the world is facing.
"It is vitally important that the application processes and delivery of funds are as streamlined as possible.”
The headline terms setting out the main features expected to apply to the loans can be found here.
You’re eligible If:
- your business is based in the UK
- your business can attract the equivalent match funding from third party private investors and institutions
- your business has previously raised at least £250,000 in equity investment from third party investors in the past five years.
Full eligibility criteria will be published in due course.
How to apply
The Future Fund will launch in May 2020. Further details about this scheme will be published in due course.