Future Fund Approves £55.9M of Convertible Loans
Statistics published yesterday by the British Business Bank show that the government’s Future Fund scheme has so far just approved £55.9m of convertible loans despite receiving applications worth £515m on the first day of launching.
The £55.9m worth of convertible loans have been approved for 53 companies and 553 companies have applied so far. The sum has been matched by at least the same amount from third-party investors.
The fund was set up as an alternative to the Coronavirus Business Interruption Loans Scheme (CBILS) for startups unable to demonstrate a turnover. It was designed to support innovative UK companies with good potential, that typically rely on equity investment and who are currently affected by Covid-19, through government loans ranging from £125,000 to £5m, subject to matched funding from investors.
The Future Fund was initially announced by the Chancellor on 20 April, and was open for applications a month later which meant that a number of startups who were struggling as a result of the pandemic went at least two months without government support.
Provided that applicants provide the information required during the application process in a timely manner, it is expected that the process should take a minimum of 21 days from initial application to funding being made available so it’s important for businesses to get their applications right.
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The information was correct at time of publishing but may now be out of date.