COVID-19 Corporate Financing Facility (CCFF)
In order to facilitate liquidity amongst larger firms, the 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 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 Bank of England’s website.