UK Announces £500 Million Convertible Loan Scheme for UK Start-ups Hit By Coronavirus

On April 20, 2020, the UK Chancellor, Rishi Sunak announced a new £500 million scheme (delivered by the UK Government in partnership with the British Business Bank) to provide convertible loans (alongside private third party matched investors) as bridge funding to innovative companies facing financial difficulties due to the coronavirus (COVID-19) pandemic. The Chancellor indicated that such companies would be high growth companies that drive innovation including in the tech and life science sectors. The scheme, called the ‘Future Fund’, will launch in May 2020 and will initially be open until the end of September 2020.