28 Apr Tech start-ups may have problems accessing coronavirus loans from the Future Fund
If you own and operate a tech start-up business, the coronavirus crisis is likely to be causing immense stress.
Access to operational finance may be a big issue, despite the launch of the UK government’s Future Fund and Job Retention Scheme.
One of the major problems about the Future Fund is that it will only offer support to around 20% of UK tech and innovator start-ups, while access to the Job Retention Scheme may be difficult if you don’t already run a computerised payroll.
About the Future Fund
The Future Fund was announced on 20 April and officially launches in May. It is geared to provide loans from £125,000 up to £5mn to qualifying UK businesses. However, these loans will need to match funding from other private investors.
Two major Future Fund qualifying factors for any start-up are that they must be unlisted registered companies in the UK, and should have already raised a minimum of £250,000 from private investors over the past five years.
A recent article highlights that only about 17% of all tech start-ups have raised this amount of capital over the past five years.
Can I pay employees via the Coronavirus Job Retention Scheme?
If you have put some or all of your workforce on furlough, you can claim 80% of their wages up to a maximum of £2,500 per month via the Job Retention Scheme. However, as mentioned above, this could be a problem if your business is not sharing RTI (real-time information) with HMRC. If you set up any furloughed employees on PAYE on or before 19 March 2020, it could be possible to retrospectively share this data with HMRC. If you’d like to find out more, get in touch with the payroll team at SQK Accountancy.
There are lots more ways you can ensure business continuity and reduce disruption throughout any stressful period for your UK business start-up.
Our experts at SQK Accountancy can provide small business start-up support and valuable advice that helps you weather any type of crisis situation. Get in touch today to find out more.