In this difficult time of Coronavirus outbreak, there are many schemes introduced by UK government to provide financial support to small and medium sized businesses. One of them is Coronavirus future fund scheme. Coronavirus future fund scheme is the scheme introduced by UK government to provide adequate funds to the businesses facing financial difficulties in operating their businesses in coronavirus pandemic.
Coronavirus future fund scheme is the scheme announced by UK government to issue convertible loans between £125000 to £5 million to innovative companies who are not having adequate funds and facing financial difficulties in continuing business operations due to coronavirus outbreak.
These convertible loans issued by the UK government may considered as a suitable option for those businesses that rely on equity investment and unable to take the advantage from the coronavirus business interruption loan scheme. The government have assigned initially a total amount of £250,000,000 for this scheme. It has been started in May 2020 and open for applications until 30 November 2020.
The scheme is issued in partnership with the British business bank.
In order to get eligible for this scheme, you need to meet certain conditions. You are eligible only -
The minimum loan amount sanctioned by the government to any UK company under coronavirus future funding scheme shall be £125,000 whereas the maximum loan amount sanctioned shall be £5,000,000.
The loan will be offered to the eligible UK companies for maximum period of 36 months. The government shall receive minimum of 8% interest annually to be paid by the loan holder on the date of loan maturity. Higher the agreed rate between the company and the matched investors, higher will be the rate of interest.
The bridge funding is the funding of 50% of the loan sanctioned amount by the UK government to the eligible UK businesses under coronavirus future fund scheme. The bridge funding issued by the government must be used exclusively for working capital purposes.
Bridge funding issued under coronavirus future fund scheme shall not be used by the businesses for the following purposes –
Government holds limited corporate governing rights during the tenure of the loan and even after loan conversion as a shareholder.
Limited warranties shall be provided by the company in respect of the following –
In case you have questions or need assistance in applying for the "Coronavirus Future Fund”, kindly call us on 03330886686 or you can e-mail us on enquiry@dnsaccountants.co.uk
Also Read :
Any questions? Schedule a call with one of our experts.
Sumit Agarwal Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.
Invalid value
The festive season is almost here and this year Christmas party
In the lead up to the 2024 Autumn Budget there was much
The 2023/24 tax year deadline is looming. If you are submitting an
Whether you prefer to meet and speak over the internet, or if you prefer an in person conversation we can help you with your preference.
Stay up-to-date with the latest news affecting small businesses, get business tips and tax saving advice.
From starting a limited company to tax efficiency tips, we've a range of business guides for you to download and keep.
Our experts will work with you to reduce your corporation, personal or any other tax liability, all within the rules of the UK tax legislations. We’ll ensure you’re claiming all allowances and expense claims that you would be elegible for.
We give free software to all of our clients. You’ll be able to raise sales invoices, snap pictures of receipts and be MTD compliant with ease. You can even manage your business anywhere there’s an internet connection, thanks to our mobile app!
Successful business owners are those that are on top of their numbers. Businesses are driven by the numbers behind them. If you’re not reviewing your profit & loss or balance sheet regularly, how would you know how your business has performed and how would you make proper business decisions? We can help you make sense of your numbers.
Limited time only!
Say Goodbye to Bookkeeping Hassles: Nomi offers Free Receipt Processing and big savings!