Digital process will allow small business owners to get
faster access to new loan program, helping them meet upcoming
operating expenses such as rent payments
TORONTO, April 1, 2020 /CNW/ - CIBC (TSX: CM)
(NYSE: CM) today announced 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.
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. 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 Group Head, 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 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%.
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,
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 is important that we continue to act quickly to support
small businesses across Canada,"
added Ms. 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."
About CIBC
CIBC is a leading Canadian-based global financial institution
with 10 million personal banking, business, public sector and
institutional clients. Across Personal and Business Banking,
Commercial Banking and Wealth Management, and Capital Markets
businesses, CIBC offers a full range of advice, solutions and
services through its leading digital banking network, and locations
across Canada, in the United States and around the
world. Ongoing news releases and more information about
CIBC can be found
at www.cibc.com/en/about-cibc/media-centre.html.
SOURCE CIBC