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Future Fund Almost Out Of Money After Just A Month

Posted 8 days ago

Future Fund Almost Out Of Money After Just A Month
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Less than a month after opening for applications, the government’s widely anticipated scheme for supporting startups struggling to navigate the economic impact of the pandemic, has nearly run out of money. 

In data published by the British Business Bank and Treasury, the Future Fund has now lent £236.2 million to 252 businesses since opening at the end of May.

Providing government loans ranging from £125,000 to £5 million, the Fund which provides a facility for loans to be converted into equity at a business’s next funding round, after sustained press by British startups demanding support during the lockdown. 

These new figures paint a worrying picture for businesses still yet to apply for the Scheme. Some business figures have suggested that there is a great risk of businesses failing to secure funding, resulting in many going under. The Treasury’s figures show the Future Fund has 371 applications outstanding, with just £13.8m left to invest.

The Chancellor has claimed that he could expand the Future Fund if required, but the Treasury has yet to make an announcement.

In a statement, the Treasury said: “We are backing innovative firms with a comprehensive package of support, including the Future Fund to provide capital to high-growth companies.

“The initial ££250m for the fund was an indicative figure, and we have always said more can be made available if needed.”

Responding to the news, CEO of Nextfin, Sacha Bright, said: “The Future Fund needs to be expanded as it is a great investment for the government and small businesses.

“However, the performance of the Future Fund, as demonstrated, proves that for the country to truly bounce back from this pandemic, we need to incentivise the deployment of private capital into early stage businesses by increasing S/EIS allowances.”

For more details on how the government’s other coronavirus business support schemes are performing, visit our latest breakdown

Authors: Oliver Murphy & Sacha Bright

Disclaimer

To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: coronavirus sme future fund news



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