Conditions for COVID finance scheme

The Bank of England and the Treasury have set new conditions for borrowing money from the COVID Corporate Financing Facility (CCFF), designed to provide additional help to larger firms to bridge through COVID-19-related disruption to their cash flows.

Firms wanting to draw on it for a term extending beyond 19 May 2021 will be expected to show “restraint on the payment of dividends and other capital distributions and on senior pay during the period in which their loan arrangement is outstanding”.

These commitments, and an early repayment option, are intended to create incentives for companies to repay in an orderly way after the scheme closes down in March 2021.

https://www.bankofengland.co.uk/news/2020/may/update-to-the-covid-corporate-financing-facility