Future Fund

Support provided by British Business Bank

What does this involve?

The Future Fund provides government loans to UK-based companies in amounts ranging from £125,000 to £5 million, subject to them securing at least an equal amount of funding from private investors.

These convertible loans may be an option for businesses that rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit.

The application process must be started by the lead investor, with the investee company then confirming and completing the application. You can read full instructions on how to apply on the British Business Bank website.

The scheme is will close for applications at 11:59pm on Sunday 31 January 2021. All investors and companies must submit their parts of the application by this deadline in order to be considered.

Am I eligible?

Your business is eligible if:

  • it is UK-incorporated
  • it has raised at least £250,000 in equity investment from third-party investors in the last five 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:
          a) half or more employees are UK-based
          b) half or more revenues are from UK sales

If your business is part of a corporate group, only the parent company is eligible.

Full eligibility criteria for businesses and their investors are available on the British Business Bank website.

What does this cost?

The amount of the loan must be at least matched by co-investment from other investors.

The loans will have a minimum of 8% per annum (non-compounding) interest charge applied. This interest could be higher if the company and the investor(s) agree to it among themselves.

Who is this for?

Companies based in the UK which can secure a matching amount of investment from other sources.

Important information

The loan will mature after 36 months.

The loan cannot be repaid early by the company unless all investors agree to this.

The loan must not be used to pay any:

  • borrowings
  • dividends
  • bonuses
  • advisory fees

Next steps

Visit the British Business Bank website for more information and to apply.

Support provided by British Business Bank

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