Future Fund: New COVID-19 Support for Innovative Companies

21st April 2020

As part of it`s support package for UK businesses during COVID-19, the Government have now launched, through the British Business Bank, a new initiative: Future Fund. This is aimed at helping businesses that regularly finance their operations through successive equity funding rounds (ie start-up TechCo`s).

 

Eligibility criteria:

  • UK based businesses which have been operating for five years or more.
  • The bridge funding must be used solely for working capital purposes and shall not be used by the company to repay any borrowings, make any dividends or bonus payments to staff, management, shareholders or consultants or pay any advisory or placement fees or bonuses to external advisers.
  • The business must have previously raised at least £250,000 in equity investment from third party investors in the last five years.

 

Funding Details:

  • The bridge funding will automatically convert into equity on the company’s next qualifying funding round, at a minimum conversion discount of 20%.
  • Loans ranging from £125k to £5m, subject to at least equal match funding from third party private investors.
  • The Government shall be entitled to transfer the loan and following conversion of the loan, any of its shares without restriction to an institutional investor which is acquiring a portfolio of the Government’s interest in at least ten companies owned in respect of the Future Fund. In addition, the Government shall be entitled to transfer any of its shares without restriction within Government and to entities wholly owned by central government departments,’ according to the headline terms set out by the document co-issued by the Treasury and BEIS.

 

The funding will be not released until May 2020 and the Treasury admitted that full details of the scheme were not yet available, but that these ‘will  be published in due course’.

Other items in Blogs
Jake Day
17th May 2022 We’re Hiring: Tax Careers at Whitings

With a vacancy now open for a Trainee Tax Technician in our Bury St Edmunds office, we’d like to give you a closer look at the highlights of choosing a career in tax – and also the highlights of choosing Whitings as your employer. Why choose tax? The common misconception with a career in tax…

Peter Brown
16th May 2022 e-Commerce: Are you finding keeping your business’s records a nightmare?

Understanding how to account for your business’s transactions with online selling platforms can be complicated. Ensuring that you are submitting the correct information to HMRC can be tricky as not all platforms have the same VAT treatment.   A2X could make your life easier by saving you time and headaches from the complex world of…

Louise Bassett
10th May 2022 Defra Announce 50% BPS advance

As farmers face being squeezed with price increases for inputs due to the situation in Ukraine and worldwide gas and energy prices, DEFRA have announced that the RPA will advance 50% of the value of BPS payments to farmers from the end of July 2022 with the balance to be paid from December as normal.…

Luke Bacon
10th May 2022 HMRC starts chasing up SEISS overpayments

HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants. From April, HMRC is writing to taxpayers whose entitlement to the fourth or the fifth SEISS grant has reduced by more than £100 to ask them to repay amounts that were overpaid. Entitlement to the fourth and fifth SEISS grants can be affected…

Charlie Whittle
5th May 2022 TRS – Information required and annual declarations

Intended as a companion to: TRS Who should register and when. The TRS will collect information about the trust and its trustees, settlors and other individuals or organisations exercising control. This will include: Name of the trust. Date the trust was created. Whether the trust is an express trust or not. Details of the trust…

Vanessa Pearson
4th May 2022 Taxation of Cryptocurrency gains

Similar to share dealings, you must declare any gains or losses from cryptocurrency investments on your personal tax return. It is important to keep records of dates, currency type, amounts bought or sold, and the value. There are several software options that can assist you with this; the best will include converting the currency to…