CIBC launches digital application for emergency loan programBy The IJ Staff | April 03 2020 09:00AM
The CIBC announced on April 1 that it is launching a fully digital application process for clients eligible for the new Canada Emergency Business Account (CEBA).
The CEBA is part of the federal government’s $25 billion loan program to help Canadian small businesses mitigate the impacts of the preventative measures against COVID-19. It includes an interest-free, government-guaranteed loan of $40,000 for eligible businesses. $10,000 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 then, it can be converted into a three-year term loan at an interest rate of 5%.
The bank expects more than 150,000 eligible small business clients will apply.
The CIBC’s app will allow business owners who bank with CIBC to apply for the loans which will be available as of April 6. The funds will be directly deposited into the client’s CIBC Business Operating Account once the loan is processed.
"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."