Government Coronavirus Future Fund could be a chance
Companies facing financial hardship during the Coronavirus outbreak will soon be able to claim from a new Government Scheme called the Future Fund. The Future Fund, which will be delivered in partnership with the British Business Bank, is due to launch in May 2020 and will support the UK’s high-growth VC-backed businesses. It will no doubt provide a much-needed lifeline to businesses suffering from loss of income as a direct result of the recent pandemic.
Not only will this be a welcome measure for businesses worried about the current challenges with Coronavirusbut the new Fund also gives the chance to really boost the economy as young businesses could use it to develop and thrive.
Whilst it is early days, current guidance for the Future Fund eligibility states that your Business must:
- be based in the UK,
- have raised at least £250,000 in equity investment from third party investors in the last five years, and;
- be able to attract the equivalent funding from third-party private investors and institutions.
Further details are expected to be published in the coming days and weeks on the Gov.uk website.
Therefore, if your business was in good shape prior to the Coronavirus outbreak, you could consider borrowing the cash now to stack against any future investments, such as equipment, patents or even larger premises and staff capacity.
If you are considering using the Future Fund to help boost your business, it will be important to consider what the future could look like, as well as the impact of any borrowing over such a long time. It goes without saying that this will need careful planning. A significant loan should be treated with care, regardless of whether Coronavirus exists or not. However, for those businesses that are eligible, or indeed those who had growth plans on the cards anyway, you could find that the Fund is the vital stepping stone you need to get your business to the next level.
If you need advice and guidance on your business or if you need help tidying up your internal compliance to get you ready to make an application for future funding please let our Corporate Commercial Team know and we can assist you and discuss your individual needs.