The British Business Bank has issued some FAQs to assist Investors providing the funds to be matched by the loan. These note that:
- Applications will be processed on a “first come, first served” basis.
- The application is made by the “Lead Investor” on behalf of the company and other investors.
- There is no limit to the number of companies that can be invested in but a separate application must be made for each company.
- The Lead Investor does not have to be the largest investor but must be investing at least £12,500.
- The total number of investors (including the Future Fund and Lead Investor) is limited to 149 so that no prospectus is required.
- It is their understanding that the scheme will not meet existing rules for tax reliefs, including SEIS and EIS.
- Equity funding of at least £250,000 must have been raised in the period 1 April 2015 to 19 April 2020 from third-party investors (which excludes Founders, Directors and Employees or their connected parties).
There is also extensive guidance on the information that will be required to support the application.
Re-cap, the previous measures introduced were as follows:
- Coronavirus Statutory Sick Pay Rebate Scheme
- A 12-month business rates holiday for all retail, hospitality and leisure businesses in England
- Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
- Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
- The Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
- A new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge Coronavirus disruption to their cash flows through loans
- HMRC Time to Pay Scheme
- Coronavirus Job Retention Scheme
- Deferring VAT and Income Tax Payments
- Protection from Eviction
- ‘Empty’ Business Rates Relief
- Self-employment Income Support Scheme
- Employee Expenses - General
- Insolvency Rules
- Workplace Pensions
- Employee Expenses - Cars
- Coronavirus Large Business Interruption Loan Scheme
- Coronavirus Future Fund
- “Support Finder” Tool
- HMRC Videos and Webinar
- Coronavirus Bounce Back Loan
- Pension Schemes - Small Self-Administered Schemes (SSAS) and Self-Invested Personal Pensions (SIPP)
- Additional Funding to Local Councils
- Tax-Free Childcare and 30 hours Free Childcare
- Business Interruption Insurance
- Governance Changes
Friday, 29th May, 2020