CIBC announced that it is launching a fully 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.
According to the news release, the new digital process will allow small business owners to get faster access to new loan program.
WHO IS CEBA FOR:
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 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%.
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Businesses and not for profits will be eligible to apply for this loan if they have (through CIBC):
- 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.
HOW TO APPLY & WHEN WILL YOU GET THE LOAN:
To be ready to apply for a CEBA as soon as it becomes available, clients should ensure they have registered for CIBC Online Banking for Business and have their T4 Summary of Remuneration Paid available to supply key information for their application.
CIBC will allow small business owners to apply for CEBA loans once the loans are available beginning the week of April 6th. 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.
If you are banking with other banks, contact your bank for its policies. This is available to all eligible small business owners.