On March 10, 2020, the Bank of England, Monetary Policy Committee (MPC) voted to reduce Bank Rate and to introduce a new Term Funding Scheme with additional incentives for Small and Medium-sized Enterprises (TFSME).
Today, the Bank is announcing that the TFSME will open for drawings on 15 April 2020, sooner than previously anticipated.
The TFSME is designed to complement other programs announced by the Bank and HM Treasury that are designed to support households and businesses during the period of economic disruption, caused by the outbreak of Covid-19.
The TFSME allows eligible banks and building societies to access four-year funding at rates very close to Bank Rate.
The plan is designed to incentivise eligible participants to provide credit to businesses and households to bridge through the current period of economic disruption caused by the outbreak of Covid-19.
The Bank explains that it includes additional incentives to provide credit to SMEs.
The expectation is that making TFSME funding available as soon as possible should further support SMEs’ ability to access funding from the banking system, helping them to continue to pay wages and bills during this challenging time.
