More businesses will be able to apply for investment from the government’s Future Fund from today.
According to the changes to the scheme’s eligibility criteria announced today, Tuesday 30 June, UK companies who have participated in highly selective accelerator programmes and were required, as part of that programme, to have parent companies outside of the UK will now be able to apply for investment.
To date, £320 million of Future Fund support has been allocated to more than 320 companies. Under the scheme, early-stage, high-growth businesses from a diverse range of sectors can apply for a convertible loan of between £125,000 and £5 million to help them through the Coronavirus outbreak.
The Chancellor of the Exchequer, Rishi Sunak, said: “Our start-ups and innovative firms are one of our great economic strengths. As we begin to bounce back from coronavirus they will help drive our recovery and create new jobs.
“This change means that those start-ups who have strived to be the very best, and taken opportunities to grow their business, will be able to benefit from our world-leading Future Fund.”
Initially, £250 million was made available by the Government under the Fund, to be matched by private investors. Due to the popularity of the Fund, more funding has been made available, with around £320 million having now been invested. The Government says they will keep the scale of the scheme under review.
Accelerator programmes, such as the Beavis Morgan sponsored Accelerator Academy, give businesses access to finance, mentorship and expert networks. Participants in such programmes are often required to set up a non-UK parent company in order to participate, which means some did not meet the Future Fund criteria of having a UK parent company when it opened for applications in May. From today, they are now eligible to apply for investment.
Commenting on the changes, Business Secretary Alok Sharma says: “As we restart our economy, it is crucial that our innovators and risk-takers get all the support they need to flourish.
“Our decision to relax this rule recognises the importance of many of the UK’s most cutting-edge start-ups as we bounce back from coronavirus.”
- The Future Fund is backing high-growth, innovative firms across the country through Covid-19
- The change announced today covers accelerator alumni only
- Companies will still be required to meet the ‘substantive economic presence’ tests (that half or more employees are UK-based and/or half or more revenues are from UK sales)
If you or a client are considering applying to this Government loan scheme to support your business, please contact your usual Beavis Morgan Client Partner or get in touch with John Weeden at Cadence Advisory for advice and assistance.
For further information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.