![]() THE HEADLINESTHE ANNOUNCEMENT At the Budget 2020, the Chancellor announced a number measures to support businesses and people through the Covid-19 outbreak. Two flagship schemes were announced as part of these measures, the Covid-19 Business Interruption Loan Scheme (CBILS) and the Covid-19 Corporate Financing Facility (CCFF). Of the two schemes CBILs is aimed a SMEs with a maximum turnover of £45 million (and we recommend SMEs look at this scheme), whereas the CCFF scheme is aimed at larger companies, with a minimum loan of £1 million and requires an investment grade rating or equivalent. Under the CCFF scheme, the Bank of England will buy short term debt in the form of commercial paper, from larger companies. This will support companies that have been affected by a short-term funding squeeze, and allow them to finance its short-term liabilities. It will also support corporate finance markets overall and ease the supply of credit to all firms. ELIGIBILITYKEY FACTS Larger companies require an investment grade rating or equivalent, and the Bank of England has confirmed that it will accept;
WHAT IS COMMERCIAL PAPER?For many the first question may be what is commercial paper? It is commercial paper is an unsecured, short-term debt instrument issued by a company. Commercial paper the Facility will purchase The Facility will purchase sterling-denominated commercial paper, with the following characteristics:
FURTHER INFORMATIONDetailed guidance on the Facility can be found on the Bank of England website which can be viewed at https://www.bankof england.co.uk/news/2020/march/the-covid-corporate-financing-facility > DISCLAIMER - DUE TO THE RAPIDLY CHANGING CIRCUMSTANCES WITH COVID-19, WE ARE UTILISING INFORMATION FROM GOVERNMENT SOURCES, THESE ARE TRUSTED SITES, BUT WE CANNOT BE HELD RESPONSIBLE FOR ANY INCORRECT INFORMATION OBTAINED FROM THEM OR INFORMATION ON LINKS TO THOSE SITES. THE INFORMATION PROVIDED HERE IS GENERIC IN NATURE, AND NOT SPECIFIC TO YOUR CIRCUMSTANCES, YOU SHOULD SEEK PROFESSIONAL ADVICE BEFORE ACTING ON ANY OF THE INFORMATION CONTAINED ON THIS WEBSITE PLEASE CONTACT US... WE ARE HERE TO HELP
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AuthorLucinda Matkin Archives
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