UK-based companies can now apply for a convertible loan of between £125,000 and £5 million to support continued growth and innovation in sectors as diverse as technology, life sciences and the creative industries.
The Future Fund is open to firms that have previously raised at least £250,000 in equity investment from third parties in the last five years. They will also need to have investors to provide funding to be matched by the Government, and have half or more of their employees based in the UK or generate at least half of their revenue through UK sales. The loans will convert to equity if not repaid.
The Government has made an initial £250 million available for investment through the scheme and will consider increasing this if needed. Private investors - potentially including venture capital funds, angel investors and those backed by regional funds - will at least match the Government investment in these companies.
Companies can check they meet the criteria for funding by going to the British Business Bank website. If they have secured private match funding, one of their investors can register online to start the application process.
Chancellor of the Exchequer, Rishi Sunak, said:
'Our start-ups and innovative firms are one of our great economic strengths, and they will help spur our recovery from the pandemic.
'The Future Fund will support firms across the UK to get through the pandemic by stimulating investment, so that they can continue to break new ground in technology and innovation.'
The Fund will be open until the end of September and is delivered in partnership with the British Business Bank.