At its special meeting ending 10 March 2020, the Monetary Policy Committee (MPC) voted unanimously to reduce Bank Rate and for the Bank of England to introduce a new Term Funding Scheme with additional incentives for Small and Medium-sized Enterprises (TFSME).
The Bank of England is today announcing that the TFSME will open for drawings on 15 April 2020, sooner than previously anticipated. The TFSME complements other schemes 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 scheme 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 scheme includes additional incentives to provide credit to SMEs. 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.