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COVID-19 Corporate Financing Facility (CCFF)

Director | Online Account Filing

Dave Jangid | May 22, 2020

OVID-19 Corporate Financing Facility | Online Account Filing

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

  1. The scheme shall continue to operate for at least 12 months.
  2. The scheme is delivered through commercial lenders, backed by the Bank of England.
  3. 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.

Director | Online Account Filing

Dave Jangid | May 22, 2020

Note: Please note that the content of the above article and the aforementioned information are solely for the purpose of awareness and are informative in nature. The content is designed with intent to ease the understanding while preserving the essence and importance of the compliance rules and shall not be considered as an ultimate replication of the rules. Online Account Filing does not own any responsibility whatsoever for any unpleasant event that may arise due to the misinterpretation of a specific part or whole of the information.
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