Government launches start-up loan aid to help firms survive pandemic

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Government launches start-up loan aid to help innovative businesses survive the pandemic

By Daily Mail City & Finance Reporter

Published: | Updated:

The latest Government aid scheme is launching today to help innovative and high-growth businesses survive the pandemic.

The £500million Future Fund will open to applications, allowing companies to access loans of between £125,000 and £5million. 

If they cannot pay it back, to avoid pushing the firm to collapse, the Government will convert the debt into a stake in the company.

The £500m Future Fund will open to applications, allowing companies to access loans of between £125,000 and £5m

Chancellor Rishi Sunak said: ‘Our start-ups and innovative firms are one of our great economic strengths, and they will help spur our recovery from the pandemic.’

The Treasury revealed that loans issued under its various coronavirus schemes have surpassed £22billion.

Banks have handed out 464,393 Bounce Back loans – which are 100 per cent guaranteed by the Government – worth £14.18billion to some of Britain’s smallest businesses.

The less-successful Coronavirus Business Interruption Loan Scheme (CBILS), which only carries an 80 per cent guarantee and is aimed at small and medium-sized businesses, has lent £7.25billion to 40,564 firms.

And the larger version of CBILS, or CLBILS, has approved 86 loans worth £593million to businesses throughout the country.

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