COVID-19 Business Finance Update-The Future Fund

You may have seen in one of our earlier updates that in April the Chancellor announced the Coronavirus Future Fund which is aimed at businesses that rely on equity investment and are unable to access the CBIL scheme.

The Fund will provide government loans from £125,000 to £5 million, provided that the loan is at least matched by funding from private investors and is open to applications from Wednesday 20 May 2020.

The convertible loans are largely aimed at companies that are unable to access other government support because they are pre-revenue or pre-profit.

However, the Fund is open to any company that meets the eligibility criteria provided that at least £250,000 in equity has been previously raised from third party investors in funding rounds in the last five years.

The latest government guidance, including basic company eligibility can be found here

The Fund is being delivered by The British Bank and detailed guidance, including investor criteria is available on their website:

https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/

Note that the applications are Investor lead as follows:

• The investor(s) certifies that they meet eligibility criteria and provide key investment details
• The company confirms the accuracy of the investment application details, before submitting the full application
• If the application is approved, all parties execute an agreement (in the format provided on the government website link) and satisfy the conditions of the agreement before the funds are released.

The British Bank has a comprehensive FAQs for Companies at:
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/faqs-for-companies/ 

If you need any further assistance, then please speak to your usual contact at Rayner Essex or fill out the form below and we will get in touch.