Future fund applications roll in as value of pandemic support increases

The British Business Bank is considering almost 900 applications for its future fund scheme as data reveals that approvals for coronavirus emergency loan schemes continue to rise.

Treasury data shows there have been 883 applications for the future fund since it launched at the end of May.

The future fund opened for applications on 20 May and the process is expected to take a minimum of 21 days.

The £500m fund offers convertible loans ranging from £125,000 to £5m from the government, subject to at least equal match funding from private investors.

Firms must have previously raised at least £250,000 in equity investment from third-party investors in the past five years.

The loans will have a minimum annual interest rate of eight per cent.

Read more: Which government-backed SME funding schemes are open to P2P lenders?

Meanwhile, the government figures show lenders have approved more than £31.3bn to more than 745,000 businesses through government-backed schemes.

This is up from £27.5bn last week.

As of 31 May, lenders have provided £21.3bn through the bounce back loan scheme.

There have been 699,354 facilities provided under the scheme, an approval rate of 80 per cent.

Lenders have approved £8.9bn in support to 45,843 firms through the coronavirus business interruption loan scheme – an approval rate of 51 per cent – and £1.1bn through its larger equivalent, which has an approval rate of 32 per cent.