In the face of this challenging environment, the UK government has introduced an unprecedented combination of measures to support businesses. One of these, for larger companies, is the COVID Corporate Financing Facility (CCFF).
- Administered by the Bank of England on behalf of HM Treasury
- Short-term finance option
- Funding through the issuing of commercial paper of up to one-year maturity
- Financing offered on terms comparable to those in the period before the COVID-19 outbreak
- Scheme will operate for an initial 12-month period, although this may be extended
- Six months’ notice will be given before the facility is removed
- Designed to help support the payment of wages, suppliers, or to increase general cash flow
- Details of how to apply can be found on the Bank of England website
- Scheme in operation since Monday 23 March 2020
What type of borrowing is available?
- Short-term commercial paper
- Minimum £1m
- Maximum loan amount will be determined by the Bank of England and will likely be considered on a case-by-case basis
- Terms of one week to 12 months with drawings able to be rolled over
Is the CCFF right for my business, and do I qualify?
- Available to non-financial businesses only
- Only firms that are deemed to make a ‘material contribution’ to the UK economy will qualify
- Must be able to demonstrate that the company was in sound financial health prior to COVID-19 and any current financial difficulties are a direct result of this ongoing crisis
- Minimum credit rating required. This will be based on credit ratings prior to the emergence of the coronavirus outbreak
- No requirement to have issued commercial paper previously