What government support is available for start-ups during coronavirus?

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On 20th April, the government announced a scheme called The Future Fund to support early-stage companies that aren't eligible for existing small business support schemes. The Chancellor, Rishi Sunak, said that start-ups will be important in helping the UK's economic growth after coronavirus.

We've summarised how the Future Fund works to help you understand if it's the right option for your business. We'll keep our blog updated when we know more.

The Future Fund will provide government loans to UK-based companies

The Future Fund has been introduced by the government to support start-ups that have been affected by coronavirus. It'll offer loans of between £125,000 to £5 million - as long as you've found private investors who are lending you at least the same amount.

These loans are convertible loans, which means that the loan can ultimately convert into equity, depending on how your business evolves.

The money can only be used as working capital - that's the money your business needs to operate on a day-to-day basis. So you can use the money to pay for inventory or other supplies, for example. But you won’t be able to use the money to pay back any debt, or to pay dividends or bonus payments.

You can borrow the money for up to 3 years and you’ll pay at least 8% interest on the loan on maturity.

These convertible loans might be a good option for businesses that are reliant on equity investment, but aren't eligible for the Coronavirus Business Interruption Loan Scheme (CBILS).

You can read more about The Future Fund and more detailed terms about how it works on the government site here.

How to know if you're eligible

You’ll be eligible for a Future Fund loan if:

  • Your company is an unlisted, UK registered company that has raised at least £250,000 in equity investment from private investors in the last 5 years

  • Your business is based in the UK

  • Your business can raise the same amount of money as the loan from private investors and institutions

  • Your business has raised at least £250,000 in equity investment from private investors in the last 5 years

How to apply for one of the loans

The Future Fund will launch in May 2020, and run until at least the end of September 2020.

More information about how to apply for the scheme will be published here and we'll update this blog when it comes out.


The government has ordered certain businesses to close to prevent further spreading of coronavirus. You can see the guidelines, including which businesses are affected, here.

If you're affected by coronavirus, it could also impact your income, your finances, and how you're able to manage your money.

That's why we want to reassure you that we're well-equipped to support you and keep Monzo running, even if we can't make it to the office. Here's how we can support you during the coronavirus outbreak.


This information has been taken from the government website, gov.uk and this blog post was written on the 21st April. We'll update it when more information is released. You can also check the government page here for more information.