CIBC has announced it is launching a digital application process for clients eligible for the new Canada Emergency Business Account (CEBA) as part of the federal government’s $25 billion loan program for Canadian small businesses.
It said in a release that the new digital application process will allow small business owners who bank with CIBC to apply for the CEBA in just minutes once the loans are available beginning the week of April 6th.
The bank added it expects more than 150,000 of its small business clients will be applying for the subsidy.
Clients will be notified when the application date is announced. Once the loan is processed, funds will be deposited directly to 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 head of personal and business banking.
“We’re focused on making the application process as easy as possible, helping our clients access these much-needed funds quickly to provide stability in the near term.”
The CEBA is designed to support small business owners in meeting their immediate cash flow needs and includes:
- 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 Dec. 31, 2022.
- If the loan cannot be repaid by Dec. 31, 2022, it can be converted into a 3‑year term loan at an interest rate of 5%.
Businesses and not for profits will be eligible to apply for this loan if they have:
- an operating company registered in Canada
- annual payroll of between $50,000 and $1 million (based on your 2019 T4SUM Summary of Remuneration Paid); and
- 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.
To be ready to apply for a CEBA as soon as it becomes available, the bank said that clients should ensure they have registered for CIBC Online Banking for Business and have their T4 Summary of Renumeration Paid available to supply key information for their application.
Since launching a dedicated small business support centre last week, thousands of business owners have already contacted CIBC to have loan payments deferred and receive advice on managing their short-term cash flow, it added.
“It is important that we continue to act quickly to support small businesses across Canada,” said Dottori-Attanasio. “They are the backbone of our economy, employ millions of Canadians and need our help now. The actions we are taking are geared towards doing everything we can to support our small business clients.”
