The Government has announced a new scheme to help businesses with the impact of Coronavirus. The Future Fund is aimed at rapidly growing businesses that typically rely on equity investment.
These businesses are often pre-revenue or pre-profit and have been unable to access existing schemes, such as the Coronavirus Business Interruption Loan Scheme (CBILS).
The scheme will provide loans from the Government worth between £125,000 and £5 million, which must be at least matched by private investors.
Loans under the scheme will automatically convert into equity on a firm’s next qualifying funding round or if the funds have not been repaid by the end of the loan period.
The scheme will be delivered in partnership with the British Business Bank and full details of how to apply are expected to be announced shortly.