Helping you prosper

Updated guidance on the Coronavirus Future Fund

20 May 2020

HM Treasury (HMT) has updated its guidance on the Coronavirus Future Fund, which is available from today, 20 May 2020.

The Government has launched the Future Fund to provide convertible loans of between £125,000 and £5m to UK-based companies, subject to at least equal match funding from private investors. The Fund is most suitable for innovative businesses which are facing financial difficulties due to the coronavirus outbreak, and who typically rely on equity investment and are unable to access other government business support programmes because they are either pre-revenue or pre-profit. AIM quoted companies will not qualify, nor will companies with shares admitted to trading on any other similar market, stock exchange or listing venue.

Your business is eligible if:

  • it is UK-incorporated - if your business is part of a corporate group, only the parent company is eligible
  • it has raised at least £250,000 in equity investment from third-party investors in the last 5 years
  • none of its shares are traded on a regulated market, multilateral trading facility or other listing venue
  • it was incorporated on or before 31 December 2019
  • at least one of the following is true:
    • half or more employees are UK-based
    • half or more revenues are from UK sales

Outline terms and conditions are as follows (based on the outline convertible loan note agreement):

  • 8% interest rate on the convertible loan
  • 20% discount to equity price on conversion
  • 100% redemption premium
  • Three year term
  • Quarterly reporting requirements for Companies

The scheme is likely to see the Government take significant stakes in these companies in the medium term.

The British Business Bank is delivering the scheme.

View the updated guidance at

Please see our video introduction of the guidance by Helen Cowley as well as our earlier blog on 20 April for further insights.