What is the process for a CBILS Loan application?

Johnson Reed
3m read

In support of helping businesses that have been adversely effected during the pandemic, the Coronavirus Business Interruption Loan Scheme is available through Johnson Reed to for small businesses. Our team have been working with businesses to ensure the process is smooth, helping businesses to secure essential funding to continue to trade. The loan is available for an unknown amount of time, it has various stages, requirements, criteria and a process that must be adhered to so that our panel of accredited lenders can process applications smoothly.

To help you secure your CBILS loan, we are giving you the information you need on the process to ensure that each stage is executed effectively and your funds can be secured as soon as possible to give your business a much needed boost in finances. There are six main stages and all require due diligence to ensure lenders can register and process loan applications efficiently.

1. Identify finance requirements

First and foremost, you must identify the finance requirements of your business, including what size loan is needed, ranging from £50,000 to £250,000 for the scheme. This includes providing all relevant information, giving lenders the ability to consider the application. Information required can be found here and includes two years’ full accounts, last 6 months’ bank statements, details of directors, amount your business needs to borrow and repayment period. The business requiring the loan must meet the criteria for the loan, as  Once these requirements have been identified and confirmed with us at Johnson Reed, the next stage of the process can begin.

2. Johnson Reed proposes deal

The next stage of the process is where we come in. With the identification of finance requirements and all relevant information, we then propose the deal to our panel of accredited lenders. The lenders then read and process the application, ensuring that the full criteria has been met, and all relevant information has been provided. If everything checks out and the lender is satisfied with the proposal, the loan application can move on to the next stage of the process.

3. Lender underwrites deal

Once you have provided us with the information in line with the criteria, and we have ensured the application is secure enough to be approved and sent to the lender, it is then underwritten by the lender who draft legal documents, contracts and provide the finances for the loan, developing repayment plans in line with interest rates. The lender ensures all checks are complete, liaising with us to ensure details are accurate and the deal provides the business with the correct funds.

4. Conditional offer subject to CBILS criteria

After the lender is satisfied with the terms and conditions and has underwritten the deal proposed by Johnson Reed, they will make a conditional offer, ensuring that the business has met credit checks etc. The deal is then sent to you at the business.

5. Customer signs the agreement

With the deal proposed, agreed, underwritten and offered, the agreement is then sent over to you to sign, confirming the penultimate stage of the process. The agreement must be signed by the director listed as receiving the finances, and returned for Johnson Reed and the lender to ensure funds are released.

6. Funds released

The final and most important part of the process. Everything has been agreed and signed, the funds are then released into the business account, to support the business during the pandemic, and allowing you to continue trading and growing.

For more information on the Coronavirus Business Interruption Loan Scheme or to speak to one of our team about your finance options, contact us at info@johnsonreed.co.uk or call 0161 429 6949.

Our online application form can be found here.

Download our PDF for more information.