The Chancellor has today announced a new Future Fund for companies backed by private investors, whilst this won’t be relevant for most companies we are aware that it has been widely reported in the media so have summarised the key points below.
Full eligibility details will follow, but at the time of writing this is what we know:
- The business has previously raised at least £250k in equity investment from third-party investors in the last 5 years;
- The business can attract Government funding up to the level of funding from third-party private investors and institutions;
- The business must be based in the UK with a substantial UK presence;
- Only the parent company can receive the loan;
- The scheme is available from May until the end of September 2020.
The funds can only be used for working capital and cannot be used for refinancing, dividends or bonuses or to pay external advisers for assistance in raising the finance. The loans are for a maximum of 36 months and if they are not repaid at maturity they convert into equity, something that is unlikely to go down well with business owners.
If you are backed by investors but would like an independent and impartial view on what that means for you and whether your business qualifies please contact us now on 0330 088 7111.
Reminder – Furlough portal is now live
As you may already be aware, the Government’s new furlough portal went live today and we are pleased to report that despite a few teething problems it seems to be functioning well. If you need any support or guidance on how to Furlough your staff and the steps involved please contact our head of HR Wendy McGarvey to discuss further.