COVID-19 Corporate Financing Facility (CCFF) explained
On 17 March 2020, UK Chancellor, Rishi Sunak, announced the roll out of multiple measures amounting to £330 billion of funding, to support businesses through disruption resulting from the global COVID-19 epidemic. This package includes the provision of Government-backed loans via two key sources:
- Coronavirus Business Interruption Loan Scheme (CBILS): the British Business Bank will provide Government backed loans of up to £5 million for eligible SMEs with revenues less than £45 million. CBILS is available through 40 accredited lenders – more information can be found on the scheme here: (link)
- COVID-19 Corporate Financing Facility (CCFF): The Bank of England (the “BOE”) will provide short-term corporate debt (commercial paper) for large and medium-sized UK businesses to facilitate credit supply and maintain liquidity. The BOE, acting directly, will purchase short term debt from companies, commencing from Monday 23 March.
The purpose of CCFF
CCFF is the result of combined efforts from the BOE and HM Treasury to maximise support for UK businesses, and alleviate short-term pressure on cash flows and demand for working capital. CCFF is designed to allow large and medium-sized businesses to meet day-to-day operational funding obligations, including for example, payment of wages and suppliers.
The BOE has announced that the CCFF scheme will last for at least 12 months, although offers to sell commercial paper must be received in advance of 31 December 2020.
Download a copy of this key information sheet below or if you are considering CCFF funding
If you would like to discuss the CCFF scheme, or to have assistance to consider an application for CCFF funding, please complete our enquiry form and one of our Corporate Finance specialists will be in touch.