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Things to bear in mind with CBILS - (Coronavirus Business Interruption Loan Scheme)
If you are thinking of applying for a loan from your bank or other provider then bear in mind that you will only be eligible for a loan IF you would have had a viable business had the Coronavirus not happened.

The scheme is currently only for businesses with Turnover below £45m and the amount of the loan will be between £25k and £5 million, but your loan cannot exceed:

• Twice the annual wage bill for 2019; or

• 25% of Turnover for 2019.



Lenders will be looking to help their own customers first before taking on any new business, so look to banks or lenders you are working with first.

In order to get a loan, the lenders will be needing a lot of information from you, so check with them what they need.

Lenders want to help, but their resources are being stretched so they will not be taking information on a piecemeal basis, they will only start to process your application once they have ALL the information that they need. So be prepared for their demands.

Lenders are likely to need the following information:

• Annual accounts for the last 3 years (or as long as possible if trading for less than 3 years)

• Management accounts up to end Dec 2019 (later if you have them). Including P&L and balance sheet

• A 3-month cash flow forecast to demonstrate the amount of funding required for the anticipated period of disruption. This should include likely income, all outgoings including servicing any other loans that you may already have. Also account for any other government initiatives that may help reduce the size of the loan required.

• A further 3-month cashflow may be required to demonstrate how you will trade in the recovery period.

• This will need to be backed up by some sort of commentary or business plan to show how the business will trade through the recovery period.

• List of existing business debt including the lender, outstanding balance and term left on the loan. This will include Overdrafts, HP, Lease and Invoice Finance.

• Detailed information about working capital already in the business i.e. debtors, creditors and stock levels are also likely to be asked for.

• It is also highly likely that Information about the directors will also be needed, if they have a significant shareholding in the business.



This is by no means a comprehensive list as different lenders will demand different information.

As I said, the lenders want to help, but be prepared for a lot of form filling and dragging together of information before you even get to the start line.

For more information please look at the British Business Bank website

https://www.linkedin.com/pulse/things-bear-mind-cbils-coronavirus-business-loan-scheme-richards/

27th March 2020