12 month scheme for large businesses during COVID-19
Large businesses facing severe disruption to cash flow can purchase short term debt – commercial paper to quickly and cost-effectively raise working capital to page wages and suppliers. The scheme is funded by central bank reserves and will run for a minimum of 12 months, or as long as needed during the coronavirus crisis.
Who can access the scheme?
Large businesses who are fundamentally strong but are facing severe disruptions to cash flow. Firms must be able to demonstrate they were in strong financial health before but do not need to have issued commercial paper. Eligible businesses should have a short or long term rating of investment grade as of 1 March 2020, or similar. If you do not have a credit rating, you can ask your bank to make an assessment and then contact CCFFeligibleissuers@bankofengland.co.uk to discuss your potential eligibility. Another potential route to evidencing credit status is for your firm or your bank to get in touch with one of the major credit rating agencies to seek an assessment of credit quality in a form that can be shared with the Bank of England and HM Treasury, noting that you are doing so because you wish to use the CCFF. Firms should be UK incorporated companies, including those with foreign-incorporated parents and with a genuine business in the UK; companies with significant employment in the UK; firms with their headquarters in the UK. Considerations apply if the business generates significant revenues in the UK, serves a large number of customers in the UK or has a number of operating sites in the UK.
When can I access the scheme?
How can I access the scheme?