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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.

If you need any advice in this area please get in touch enquiries@cowgills.co.uk 

Disclaimer

The information was correct at time of publishing but may now be out of date.

Business Funding
Posted by Cowgills
10th June, 2020
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