The Business Development Bank of Canada (BDC) Co-Lending Program frequently asked questions

What’s the BDC Co-Lending Program for Small and Medium-Sized Enterprises?

Provided jointly by CIBC and the BDC, the Co-Lending Program provides variable-rate term loans at market rates to eligible businesses to help deal with the economic impact of the COVID-19 pandemic.

Eligibility guidelines

Who’s not eligible to apply?

Businesses aren’t eligible to apply for this program if they:

  • are a government organization or body (other than an Indigenous entity or body) that owns 25% or more of the equity interests;

Loan details

What loan amounts are available?

Businesses with the following 2019 revenue thresholds can apply for the following loan amounts:

  • Revenues under $1 million: eligible for loans up to $312,500
  • Revenues from $1 million to $50 million: eligible for loans up to $3.125 million
  • Revenues greater than $50 million: eligible for loans up to $12.5 million

What if I need a loan above the loan amounts stated above?

While you don’t qualify for larger amounts than stated above, please speak with your CIBC Advisor, Commercial Banking Relationship Manager or Private Banker to discuss your specific situation and other borrowing options potentially available to you.

What terms and amortizations are available?

For CIBC Business Banking clients, loans are available for terms up to 10 years with a maximum 20-year amortization. There is an option to only pay the interest for the first 12 months after the initial advance.

What interest rate will I pay on the loan?

The interest rate charges will be based on Canadian prime, at market rates, and will depend on your personal and business profile, as well as the size of the loan.

Are there any fees associated with this program?

There will be a set-up fee that is dependent on the size of the loan.

Application details

Who is eligible to apply?

Businesses are eligible to apply if:

  • they are a Canadian-based commercial entity with the intent to generate revenue from the sale of goods or services and that has business operations in Canada;
  • CIBC is their primary bank;
  • they have not benefited from or are in the process of benefiting from this Co-Lending Program at another bank or financial institution; and
  • they have been negatively impacted by COVID-19.

Who is not eligible to apply?

Businesses are not eligible to apply for this program if they:

  • are a government organization or body (other than an Indigenous entity or body), or an entity in which a government organization or body (other than an Indigenous entity or body) owns 25% or more of the equity interests;
  • are a union or charitable, religious or fraternal organization or an entity in which any such organization owns 25% or more of the equity interests; 
  • are an entity in which 25% or more of the equity interests are held by any single current member of the Parliament of Canada or any single current member of the Senate of Canada other than a publicly traded company; or
  • promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, colour, religion, sex, age or mental or physical disability.

How do I apply?

Before applying, make sure:

  • you’re the key principal of the business;
  • you’re registered for CIBC Online Banking® for Business with your CIBC Business Convenience Card; and that
  • your business contact information, including phone number and email address, is up-to-date.

Register for CIBC Online Banking for Business with your CIBC Business Convenience CardOpens a new window in your browser. 

As part of the application process, you’ll be asked to provide:

  • information for co-signatories and guarantors; 
  • personal income and business income;
  • other financial details, including your mortgage or monthly rent amount;
  • financial statements for the business for 2018 and 2019;
  • T1 General (4-page jacket) and Notice of Assessment for the last 2 years available for the co-signatories, guarantors and spouses, as applicable;
  • personal net worth documents, including investment statements, savings and account holdings at other financial institutions and mortgage statements; and
  • personal and business contact information, including phone number and email address.

Additional information may be requested in the application process.
Check with your CIBC Advisor or Relationship Manager for more details.

Apply online through CIBC Online Banking for BusinessOpens a new window in your browser.

I’m not registered for CIBC Online Banking for Business. How do I register?

If you’re not registered to use CIBC Online Banking for Business, please register here using your Business Convenience Card or call your CIBC advisor or your nearest Banking Centre.

What information will I need to have on-hand to apply?

As part of the application process, you will be asked to provide:

  • information for co-signatories and guarantors; 
  • personal income and business income;
  • other financial details, including your mortgage or monthly rent amount;
  • financial statements for the business for 2018 and 2019;
  • T1 General (4-page jacket) and Notice of Assessment for the last two (2) years available for the co-signatories, guarantors and spouses, as applicable;
  • personal net worth documents, including investment statements, savings and account holdings at other financial institutions and mortgage statements; and
  • personal and business contact information, including phone number and email address.

Additional information may be requested in the application process.

What should I do if I haven’t received or can’t locate my 2018 and 2019 T1 General or Notice of Assessment?

If you haven’t received or can’t locate your T1 General or Notice of Assessment, contact the Canada Revenue Agency to have them reissued to you.

I have accounts at multiple financial institutions. How do I determine where to apply?

Your business’ primary financial institution is where your business does the majority of its day-to-day banking, including employee payroll, supplier payments and collection of receivables using a CIBC Business Operating Account. If CIBC is not where your business conducts its day-to-day banking, please apply through the financial institution that holds your primary business operating account. 

I run my sole proprietor business using a CIBC personal chequing account. Can I still apply?

No. The BDC Co-Lending Program is available only to business clients with a CIBC Business Account. The federal government has announced a number of relief measures to support sole proprietors. Further information is available at the Government of Canada’s COVID-19 Economic Response Plan site here.

Financial relief options

What other financial relief options are available for my business?

We understand the financial pressure our business clients are under and we’re committed to providing you with a range of financial relief options, including payment deferrals, immediate cash management and new lending solutions, such as the Canada Emergency Business Account (CEBA). Get in touch with your CIBC Advisor, who can provide you with advice and solutions based on the specific needs of your business.

Banking remotely

How can I take care of my business banking needs remotely?

For everyday banking, please continue to speak with your CIBC Advisor or Relationship Manager and use our CIBC Online Banking for Business, CIBC Mobile Banking® App, CIBC SmartBanking™ for Business, and Telephone Banking

We also have a number of international services, including CIBC Global Money Transfer for Business, which allow you to send money to over 80 countries. Our ATMs are available to conduct transactions at any time as well.

If you’re a Commercial Banking or Private Banking client, please get in touch with your Private Banker or Relationship Manager and use CIBC Cash Management Online (CMO), CIBC SmartBanking for Business, and CIBC Online Banking for Business, as well as ATMs and eDeposit for daily transactions.