CORONAVIRUS - Future Fund Loans - UPDATE

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