In order to facilitate liquidity amongst larger firms, Chancellor Rishni Sunak announced that the government has agreed to a new lending facility with the Governor of the Bank of England to provide low-cost, easily accessible commercial paper. This Facility is called COVID Corporate Financing Facility (CCFF). This scheme aims to provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms to help businesses in paying wages and suppliers.
Eligibility for CCFF
All non-financial companies that meet the criteria that have been set out on the Bank of England’s website are eligible to apply for CCFF. It mainly covers large-sized companies and their finance subsidiaries making a material contribution to the UK economy.
Features of CCFF
- The scheme shall continue to operate for at least 12 months.
- The scheme is delivered through commercial lenders, backed by the Bank of England.
- The aim of the scheme is to:
- Support the large companies facing a short-term financial crisis and are unable to pay short-term liabilities due to the effect of the coronavirus outbreak.
- Support corporate finance markets overall.
- Ease the supply of credit to all firms.
How to apply for CCFF?
To know how to apply for a finance facility under CCFF, visit the Bank of England’s website.
