09/24/2020 | News release | Distributed by Public on 09/24/2020 05:27
The objectives of the TFSME are to:
Consistent with the objectives of the scheme, the Bank announced on 2 May 2020 that TFSME participants would be able to extend the term of some of their TFSME funding to align with the term of loans made through the BBLS, which was set up to enable businesses to access finance more quickly during the coronavirus outbreak.
The Bank is today announcing further measures to ensure TFSME funding can continue to support lending to SMEs through the BBLS.
In addition to the change announced in May, whereby banks will be able to extend the term of some TFSME funding from four to six years, the Bank will also in future allow TFSME participants to extend part of their borrowings again, out to a total term of up to ten years.
Participants will be able to extend the term of TFSME loans by up to a further four years at the point at which existing six year TFSME loans mature. The amount of TFSME funding that can be extended will be capped at the amount of BBLS lending on TFSME participants' balance sheets at that point in time.
TFSME documentation will be updated in due course to reflect this change and to provide further operational details. Other than as amended by this Market Notice, previous Market Notices related to the TFSME continue to apply.