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The Bank of England said it would set up a new fund with the finance ministry to buy commercial debt with a term of up to one-year issued by investment-grade companies making a "material contribution" to Britain's economy.
The fund would be financed by the creation of central bank reserves, much like the BoE's quantitative easing programme.
Britain's budget forecasters said the scale of the borrowing needed might resemble the country's immense debt splurge during World War Two.
"Now is not a time to be squeamish about public sector debt," Robert Chote, head of the Office for Budget Responsibility, said.
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"We ran during the Second World War budget deficits in excess of 20% of GDP five years on the trot and that was the right thing to do."
On Monday, French President Emmanuel Macron said his government would guarantee 300 billion euros worth of loans, and promised that no French company would be allowed to collapse.
Investors are watching for another interest rate cut by the BoE and an expansion of its 435 billion-pound government bond buying programme.
