Information required to apply for a Coronavirus Business Interruption Loan Scheme (CBILS)

Information required to apply for a Coronavirus Business Interruption Loan Scheme (CBILS)

Applications to access the Coronavirus Business Interruption Loan Scheme (CIBLS) went live last week. We have now reviewed what information will be required to support an application and summarise below the key information that you will need to submit.

Some of the information may vary from bank to bank, but we anticipate that most will remain the same. Additionally, having all the information below available will help bolster an application and provide crucial information for your business, when exploring options available to you.

We can assist clients in preparing these documents and providing the additional information required. Should you be considering a business interruption loan, please contact us to discuss how we can help you.

Planned changes to the scheme

On 3 April 2020, in a Government news article, the Chancellor announce additional measured to bolster business interruption loans for small businesses and announcing a new scheme for larger companies.

The scheme is to be extended, so all viable small businesses affected and not just those unable to secure regular commercial financing, will now be eligible to apply for a loan. the revised scheme is due to accept applications form Monday 6 April 2020.

As part of these revisions, the Government is also introducing measures to stop lenders requesting personal guarantees for loans under £250,000 alongside making operational changes to speed up lending approvals.

Standard documents to be completed

All applicants are required to complete a CBILS application form, together with a British Business Bank data protection form. This is a regulatory requirement which provides the bank permission to share customer data with the British Business Bank.

Information required to support an application

The following information also needs to be submitted, for the bank to assess applications:

12 Months Cashflow Forecasts 

Detailed 12-month cashflow forecasts will be required as a bank will need to see the requirement demonstrated within the cashflow forecast and the bank will also need to understand what other action a business has taken. 

Management Accounts

Information is required showing the 12-month performance of the business prior to the impact of the Coronavirus. This can be management accounts, and if available audited accounts for 2019.

Financial Forecasts

A set of forecasts will need to be provided, which have been used to estimate the total cash requirement over the next 12-month period and the amount of debt a business is seeking together with any key assumptions or risk factors which may impact this.

For modelling purposes, it is likely that these assumptions would include a 6-month period of severe disruption. 2021/22 business performance is likely to be considered the same as that prior to the impact of Coronavirus on your business. Any longer-term impacts which may mean this assumption is not reasonable, should be highlighted.

Performance and Impact Statement

An update on the performance of your business prior to the onset of Coronavirus and how your business has been impacted by the crisis.

Action Statement

A summary of the actions your company has already taken, or are considering, to mitigate the impact of Coronavirus.

Financial Commitments

A document that explains any schedules of Hire Purchase or third-party finance commitments. This will need to include current balances, repayment commitment details and expiry dates.

Summary of other funding and support options

It will also be important to include a statement which explains the extent to which you’ve explored other areas of funding or Government support before applying for this loan.

How we can assist

Whilst this may look daunting to many businesses and a lot of information to provide, Alexander & Co regularly provides this level of information to assist clients for a wide range of purposes.

If you are considering applying for a Coronavirus Business Interruption Loan Scheme or are looking to explore other avenues to support your business, please do not hesitate to contact us for advice. 

We can assist in the preparation of all the above information, to help ensure your application is as robust as possible, to agreed timescales. We are also on hand to advise on what other support is available to help businesses navigate themselves through the impact caused by the COVID-19 disruption they may be facing.

For more information, please contact us by filling out the form below or send an email to info@alexander.co.uk