One of the two major measures announced by the government to support the UK economy is aimed specifically at larger businesses.

The COVID Financing Facility aims at supporting liquidity in larger firms by allowing companies to sell short term debt to the government in the form of commercial paper.

What’s the Definition of Commercial Paper?

Commercial paper is the term for a debt instrument used by large corporations. It’s an unsecured promisorry note – a written promise from one party to another – to pay debt back at a future date.

Guidelines for the COVID Financing Facility

Full guidelines are available on the Bank of England’s website here.


  • UK incorporated
  • The government make it clear that this facility is for large firms only. They specify it’s for firms who ‘ make a material contribution to the UK economy’
  • Must have been in sound financial health prior to the epidemic
  • A significant employer
  • A short-term rating of A3/P3/F3/R3 or above, or a long-term rating of BBB-/Baa3/BBB-/BBB low or above by at least one of the major credit ratings agencies