01 Jul 2020
The government has expanded its Future Fund scheme, which aims to support start-up businesses not eligible for other coronavirus (COVID-19) rescue measures.
The change will ensure that firms which have moved their headquarters abroad can still access the scheme.
This means that UK companies who have participated in accelerator programmes and were required, as part of the programme, to have parent companies outside of the UK will now be able to apply for investment.
Companies in accelerator programmes are often required to set up a non-UK parent company in order to participate, which means some did not have a UK parent company when Future Fund applications opened in May.
The Future Fund offers government loans of between £125,000 and £5 million to UK-incorporated companies, provided private investors at least match the funding supplied by the state. The package is aimed at innovative start-up businesses not eligible for existing COVID-19 support.
Commenting on the matter, Business Secretary Alok Sharma said: 'As we restart our economy, it is crucial that our innovators and risk-takers get all the support they need to flourish.
'Our decision to relax this rule recognises the importance of many of the UK's most cutting-edge start-ups as we bounce back from coronavirus.'
Find more guidance on the Future Fund here.