Start-ups warned to act as Government’s Future Fund conversion deadline approaches for many

Print Friendly, PDF & Email

Start-ups warned to act as Government’s Future Fund conversion deadline approaches for many.

Three years ago, the government offered a helping hand for many UK-based start-ups to weather the Covid storm – the Future Fund. Now, many of those companies must convert their loan or face a substantial repayment bill.

Acuity Law’s Start-Ups team explains.

Author: Andrew McGlashan

Key Contact: Tom Saunderson

What is the Future Fund?

During the Covid pandemic, the Government created the Future Fund, a £1.14 billion support scheme for UK-based companies, matching funding from private investors of between £125,000 to £5 million. Operated by the British Business Bank (BBB), the Future Fund was designed to keep start-ups afloat as Covid halted other investment opportunities.

How did the Future Fund work?

The scheme offered between £125,000 to £5 million to start-up businesses through convertible loans, with a three-year conversion deadline. The company must fundraise within that time or repay the full amount of the loan plus the same amount again as a “redemption premium.”

Put simply, if the company is unable to raise financing, it must repay twice the amount of the Future Fund loan.

For solvent businesses, the BBB will extend the deadline, but some have reported a lack of clarity over eligibility.

My company’s Future Fund deadline is approaching. What should I do?

If your deadline is approaching and you are concerned you will be unable to convert or repay your loan in time, you should seek advice quickly.

For information on how our Acuity Law Start-ups team can help you navigate your approaching conversion deadline, get in touch here.

Recent Posts

UKVI Accounts To Prove Immigration Status
February 29, 2024
Upcoming Changes To The Immigration Rules
February 29, 2024
Annual Tribunal Limit Increase – April 2024
February 29, 2024
Re-Introduction Of Employment Tribunal Fees
February 29, 2024
Commercial Dilapidations and Fixed Recoverable Costs
Commercial Dilapidations And Fixed Recoverable Costs
February 28, 2024
Court Of Appeal Grants Anti-Suit Injunction In First Of Three RusChemAlliance LLC Cases
February 27, 2024

Archives

Categories

Skip to content