Future Funds - update by HCP Finance
It's great to see the government supporting start-ups during the Coronavirus Crisis with the Future Fund. Such companies will generally rely on equity investment, so the way the Fund works is it will match the amount invested by an investor or group of investors.
The minimum loan amount is £125,000 and the maximum is £5,000,000, which means it will only support the larger innovative UK companies with ambitious growth strategies.
Unlike a traditional bank loan, the interest is not payable per month, but is payable in total at the end of the loan period of 36 months. It can then be repaid or converted into equity in the business.
To begin with, the government has set aside £250 million for the Fund, and stated that applications must be made by the end of September 2020. Full details are available from British Business Bank (www.british-business- bank.co.uk) or through the fund portal: www.thefuturefund.co.uk
It would be even better if they were to reduce the lower limit of funding to, say, £25,000 - but we`ll have to wait and see whether this happens. The Coronavirus Business Loan Interruption Scheme spawned the Bounce Back Loan Scheme, so is it is possible.
For more information contact us on 0161 266 7075.