The Government, alongside the British Business Bank, have launched the Future Fund for innovative companies with good potential, that typically rely on equity investment and are currently affected to receive loans equalling investments from private investors. This may be good news for those businesses in the life sciences, innovation and technology.
The British Business Bank claim the scheme will help these companies through the current period of economic disruption and the recovery, allowing them to continue their growth trajectory and reach their full economic potential. The loans may be an option for business that rely on equity investment, and are otherwise unable to access other government business support programmes. The scheme is open for applications until the end of September 2020.
How it works and eligibility
Your business is eligible if:
- it is UK-incorporated – if your business is part of a corporate group, only the parent company is eligible
- it has raised at least £250,000 in equity investment from third-party investors in the last 5 years
- none of its shares are traded on a regulated market, multilateral trading facility or other listing venue
- it was incorporated on or before 31 December 2019
- at least one of the following is true:
- half or more employees are UK-based
- half or more revenues are from UK sales
Investor applies
The investor, or lead investor of a group of investors, ensures they meet the scheme eligibility criteria and provides key investment details.
Company confirms
The company confirms the accuracy of the investment application details provided, before submitting the full application.
Contract is finalised
In the case of approved applications, all parties will execute an agreement and satisfy certain conditions set out in the agreement before the funds are released.
