UK-based companies can now apply for a convertible loan, via the Future Fund, of between £125,000 and £5 million to support continued growth and innovation in sectors as diverse as technology, life sciences and the creative industries.
These convertible loans may be a suitable option for businesses that typically rely on equity investment and are unable to access other government support, including the Coronavirus Business Interruption Loan Scheme (CBILS) because they are either pre-revenue or pre-profit.
The Future Fund, developed by the UK Government, is being delivered by the British Bank and is open to UK based firms that previously raised at least £250,000 in equity investment from third parties in the last 5 years. Those seeking funding will also need to have investors to provide funding to be matched by the government and have half or more of their employees based in the UK or generate at least half of their revenue through UK sales. The loans will convert to equity if not repaid.
Companies that are looking for further information on the fund or are considering making an application should visit https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/future-fund/