Foxley Kingham

Foxley Kingham Medical


The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses (SMEs) across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The CBILS scheme is part of a wider package of government support for UK businesses and employees.

CBILS features and eligibility criteria has been significantly expanded with effect from 6th April.  These changes mean even more smaller businesses across the UK can access the funding they need.  This includes access for smaller businesses who have been previously met the requirements but not been eligible for CBILS.

Insufficient security is no longer a condition to access the scheme.

The expanded scheme will be operational with lenders from Monday 6 April 2020.


Any business affected that requires finance will be able to access the scheme and benefit from a loan facility with:

  1. No fees
  2. No interest in year 1 and no loan repayments in year 1
  3. Loan term up to a maximum of 6 years

Application for and approval of loans is with the 40 accredited banks / lenders and so it is still necessary to comply with their individual processes.

A lender can provide up to £5 million in the form of:

  • term loans
  • overdrafts
  • invoice finance
  • asset finance 


The scheme is open to all businesses and not just companies.

The criteria to apply is businesses must:

  1. Be 50% trading (i.e. not investment activities)
  2. Have a business bank account
  3. Have traded for at least one year

Loans of up to £250k will be security free with the Government giving 80% guarantee with the lender taking 20% risk.

Loans above £250k will have to be supported with personal security capped at 20% of the loan value.  The borrower’s home cannot be taken as security.

The affordability tests will be set by the bank but expected to be based on 12 months prior to outbreak on earnings before interest and tax (“EBIT”) with repayments (capital and interest) at between 1.5 / 1.75 times EBIT.  Lending and taking on the 20% risk will be at the lenders discretion.

The loan capital is expected to be based on 25% x turnover or 2 times annual wages.

What you need to do

Information will be required to get bank/ lender approval we expect the bank/ lender to request the following from you:

  1. Before Coronavirus outbreak was the business a trading going concern i.e. bank would support in normal times
  2. Look at trading in period before Coronavirus outbreak and establish EBIT i.e. once business gets back to normal assume business will generate the same historic EBIT
  3. The Business must take advantage of all other Government support facilities
  4. Establish what cash needed over next 12 months on basis that Coronavirus difficulties end within that time and the business will be back to normal after 12 months
  5. There will be cash out for things that must be paid plus unpaid liabilities i.e. stored up creditors
  6. Estimate the cost of furloughed employees and funding gap until repayment grant received and any shortfall
  7. Working capital movements i.e. if you stop paying creditors but get debtors in then that working capital position will need to be reinstated through cashflow
  8. Show that business can clear stored liabilities and make loan repayments and interest after 12 months.

Start with a one year forecast with the business reverting to normal trading / payment of accrued creditors over an assumed period and then a one-page impact statement and how the business will adapt to the period coming out of the lockdown. 


This information is based on information available as of 6 April 2020.  Further information and guidance will be made available as it is released. 

Further information

Please call to discuss any matters and we will be pleased to assist with preparing the cash flow forecast and key assumptions and support with other aspects of your CIBLs application.