Hospitality business which do not have a credit rating should not be discouraged from applying for the Covid-19 Corporate Financing Facility, the Bank of England has confirmed.
In a letter to UK Hospitality CEO Kate Nicholls, Bank governor Andrew Bailey said it encouraged all companies who believe they may be eligible to speak to apply.
They should speak to their bank in the first instance, who can help set up a commercial paper programme, including liaising with ratings agencies to obtain a credit score, or other evidence that can show the company was equivalent to investment grade as of 1 March.
Companies that are not eligible for the scheme may benefit from the Term Funding Scheme, which provide cheaper loans to banks that can be passed on to SMEs.
The scheme, which launched yesterday, provides working capital for large firms who need it.
The Coronavirus Business Interruption Loan Scheme will provide government-backed loans of up to £5m to small and medium businesses.
A business information campaign has launched to ensure that businesses are aware of support available.
Precis
BoE clarity over eligibility for corporate finance scheme
Hospitality business which do not have a credit rating should not be discouraged from applying for the Covid-19 Corporate Financing Facility, the Bank of England has confirmed. In a letter to UK Hospitality CEO Kate Nicholls seen by MCA, Bank governor Andrew Bailey said it encouraged all companies who believe they may be eligible to speak to their bank to apply. Companies that are not eligible for the scheme, which launched yesterday, may benefit from the Term Funding Scheme, which provide cheaper loans to banks that can be passed on to SMEs.
