Will the 3 April 2020 Treasury Announcements Be Enough to Unlock Funding for British Business?
In our article published on 25 March 2020 (“Floating Britannia through COVID-19”), we compared the current crisis with the credit crunch and aftermath of 2007/8 to look at the purpose behind the COVID Corporate Financing Facility (CCFF) and Coronavirus Business Interruption Loan Scheme (CBILS), both launched on 23 March 2020. We also touched on certain other announced fiscal stimulus measures to keep the British motor running through the economic crisis caused by the COVID-19 pandemic.
Just over a week on, have these measures been successful? And what of the “gap” issue – those companies that are not (or not deemed to be) investment grade and therefore not strong enough to benefit from the CCFF, and yet have annual turnover above the £45 million limit for CBILS loans?
The 3 April 2020 announcement attempts to address both questions.