CIBC has announced today it has is ready to launch a fully digital application for the Canada Emergency Business Account (CEBA), which is part of the federal government’s $25 billion loan program for Canadian small businesses during the COVID-19 pandemic.
With branches either closed or offering limited business hours, CIBC says small businesses can apply for the CEBA “in just minutes” starting the week of April 6, 2020. CIBC says it will notify clients when they can apply and when loans are processed, they will be automatically deposited into their CIBC Business Operating Account.
“We know many small businesses in Canada have an urgent need to access the loan program announced by the federal government, so we have fully automated the loan application and disbursement process to get funds flowing as fast as possible,” said Laura Dottori-Attanasio, Senior Executive Vice-President and Group Head, Personal and Business Banking, in a statement.
According to Canada Emergency Business Account details, it will offer:
- A $40,000 interest-free, government-guaranteed loan to help pay for operating costs that can’t be deferred as a result of COVID-19.
- $10,000 (25%) of the $40,000 loan is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022.
- If the loan cannot be repaid by December 31, 2022, it can be converted into a 3-year term loan at an interest rate of 5%.
Requirements to apply for the CEBA at CIBC is as follows for businesses and non-profits:
- an operating company registered in Canada;
- annual payroll of between $50,000 and $1 million (based on your 2019 T4SUM Summary of Remuneration Paid);
- CIBC as their primary bank. This means that the business uses a CIBC Business Operating Account (opened on or before March 1, 2020) for day-to-day payments and cash management activities.
CIBC says clients should be registered for CIBC Online Banking for Business and also have their T4 Summary of Renumeration Paid on hand to give information during the application process.
I know many friends and family with small businesses impacted by the COVID-19 pandemic. The CEBA hopefully will provide some relief. For individuals, the Canadian Emergency Response Benefit (CERB) application process is set to start on April 6 as well.