£500 Million Future Fund and CLBIL Launched

Covid-19 Loan update

The Treasury has today announced a £500 million ‘Future fund’ which aims to provide companies facing financial difficulties because of the Covid-19 outrbreak, convertible loans from £125,000 to £5 million. The scmeme will be delivered through the British Business Bank (BBB) and will be availble in May. Start-ups mus have raises at least £250,000 from third-party investors in the last five years to be eligible (The Telegraph).

The government’s furlough scheme is now live and open for applications from today. The furlough scheme is a government iniciative to keep staff on the payroll despite not working due to coronavirus.

The government has also today launched the Coronavirus Large Business Interruption Loan scheme (CLBIL). The CLBILS can help provide facilities of up to £25m for businesses with turnover from £45m up to £250m, and facilities of up to £50m for those businesses with a turnover of more than £250m who are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak. More information about the scheme can be found here.