Government measures in key jurisdictions 4th edition - Flipbook - Page 147
United Kingdom
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The Future Fund (FF) – this scheme was put in place by the Government for start-up businesses as
CBILS does not apply to loss making businesses. Under the FF, the Government will match any
investment given to start-up businesses by making loans which will be convertible into equity if not
repaid. Those businesses must have previously raised £250,000 from private investors in the
previous five years. The Government announced on 30 June 2020 that the FF’s eligibility criteria was
expanded to accommodate businesses that contribute significantly to the UK economy, but do not
have their parent company based in the UK because they participated in a non-UK based accelerator
programme. These changes allow a wider number of suitable companies to apply, while maintaining
scheme protections against fraud and abuse and ensuring that the Future Fund continues to support
economic activity in the UK. There are certain restrictions on use of FF proceeds, including
limitations on use for repayment of dividends, bonuses and advisory fees in connection with the
FF. The FF will initially run until the end of September 2020, but it may be extended by the
Government should circumstances warrant it. As at the time of writing, there have been no
announcements from the Government or the BBB whether the FF will be extended past 30
September 2020.
With the exception of BBLS and FF, these schemes ensure that businesses that were viable prior to
the outbreak of Covid-19 will have access to funding. Those businesses who were facing financial
difficulty prior to the outbreak, will find it more difficult to get access to this funding.
For more information, see our articles Covid-19 Government help for UK businesses and Covid19 Government funding for UK businesses update – further help for smaller UK businesses
A further £750 million will also be available as loans and grants for small businesses focusing
on research and development. This support will be available through Innovate UK’s grants and
loan scheme.
Government measures in key jurisdictions