Canada Emergency Business Account (CEBA) 

Businesses or not-for-profits will be eligible to apply for this loan if they have:

• an operating company registered in Canada on or before March 1, 2020;
• borrowing clients who were not behind on their payments for an existing business lending product on March 1, 2020; and
• one of the following 2 conditions met:
  • Annual payroll between $20,000 and $1.5 million, based on the sum of all employment income reported by the business on all employee T4 slips for 2019; or
  • Annual payroll of less than $20,000 during 2019, and eligible non-deferrable expenses for 2020 projected to be between $40,000 and $1.5 million including commercial leases, property tax statements, utility bills.

For further details, please visit the Government of Canada websiteOpens a new window in your browser..

Before you begin your application, make sure you have:

• your business’s 2019 T4 Summary of Remuneration Paid (T4SUM);
• a 15-digit Canada Revenue Agency Number also shown on the T4SUM; and
• your business contact information, including phone number and email address.

Note: Total employment income can be found in Box 14 of the Borrower’s 2019 Summary of Remuneration Paid (T4SUM). The limited number of borrowers who also pay employees tax-exempt employment income under the Indian Act must also add this employment income for 2019, as reported in Box 71 of all employee T4 slips for 2019.

Before you begin your application, make sure you have:

• your business’s 2019 T4 Summary of Remuneration Paid (T4SUM);
• a 15-digit Canada Revenue Agency Number also shown on the T4SUM; and
• your business contact information, including phone number and email address.

Note: Total employment income can be found in Box 14 of the Borrower’s 2019 Summary of Remuneration Paid (T4SUM). The limited number of borrowers who also pay employees tax-exempt employment income under the Indian Act must also add this employment income for 2019, as reported in Box 71 of all employee T4 slips for 2019.

• your 9-digit CRA Business Number (BN);
• Your most recent business tax filing, such as:
  • T2 Corporation Income Tax Return
  • T1 General Form
    
• financial statements or documentation for calculating projected non-deferrable expenses during 2020. Eligible non-deferrable expenses include:
  • wages and other employment expenses
  • rent or lease payments for real estate used for business purposes
  • rent or lease payments for capital equipment used for business purposes
  • payments incurred for insurance related costs
  • payments incurred for property taxes
  • payments incurred for telephone and utilities in the form of gas, oil, electricity, water and internet
  • mandatory payments to service debt incurred for business purposes
  • payments incurred under agreements with independent contractors
  • fees required in order to maintain licenses, authorizations or permissions necessary to conduct business;

• you’ll also be asked to provide input on any other funds you received through other Government of Canada relief programs; and
• your business contact information, including phone number and email address.

Get a full list of eligible non-deferrable expensesOpens a new window in your browser.

The CEBA program will end on October 31, 2020. Therefore, you must complete your CEBA application by this date. If applying on the basis of non-deferrable expenses, applicants must upload all supporting documents no later than November 30, 2020. For further details, visit the Government of Canada websiteOpens a new window in your browser..

Register for CIBC Online Banking for BusinessOpens a new window in your browser.

Completing this step now will help make sure you gain access to the loan as quickly as possible.

Given that applications for this loan are only available online via CIBC Online Banking for Business for clients using a CIBC Business Convenience Card number, you’ll need to contact your advisor or your banking centre to activate a Business Convenience Card.

Afterwards, registering for CIBC Online Banking for Business with your new Convenience Card can be done at home within minutes. This will allow you to complete an online application for the CEBA and maintain a high level of banking access on an ongoing basis.

If you don’t have a CIBC Business Convenience Card number, contact your advisor or call 1-800-565-8585Opens your phone app..

Register for CIBC Online Banking for BusinessOpens a new window in your browser.

Contact the Canada Revenue Agency to have them reissue your 2019 T4 Summary of Remuneration Paid (T4SUM).

Your application will require that your organization can enter into the Canada Emergency Business Account loan agreement with the consent and attestation of only 1 signing officer. We can’t accept multiple signatures. We recommend in this case that your organization prepare and approve a resolution that allows the key principal applying for the loan to be given the special authority to attest on behalf of, and individually, bind the organization to the terms of the loan agreement.

Your business’s primary financial institution is the one 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 isn’t where your business conducts its day-to-day banking, apply through the financial institution that holds your primary business account.

Yes. Applications can be submitted for each legal business entity that meets the eligibility criteria for CEBA. Each qualifying business must have a unique 9-digit Canada Revenue Agency (CRA) Business Number. Each qualifying business is limited to one CEBA loan.

No. Clients that use personal chequing or savings accounts for their businesses aren’t eligible for the Canada Emergency Business Account. You may be eligible for other government relief programs, including the Regional Relief and Recovery FundOpens a new window in your browser.. Find more information on all government relief measures for individuals and businessesOpens a new window in your browser.

No. To ensure fair and efficient access to all eligible CIBC business clients, all applications must be submitted online via CIBC Online Banking for BusinessOpens a new window in your browser.. Make sure that you registerOpens a new window in your browser. for CIBC Online Banking for Business now to ensure you gain access to the loan as quickly as possible.

No. To ensure fair and efficient access to all eligible CIBC business clients, all applications must be submitted online via CIBC Online Banking for BusinessOpens a new window in your browser.. Make sure that you registerOpens a new window in your browser. for CIBC Online Banking for Business now to ensure you gain access to the loan as quickly as possible.

If the error occurred before you submitted the application, for example, if you didn’t see a confirmation screen, then go back to the formOpens a new window in your browser..

You can also access the application from the Customer Services section within CIBC Online Banking for Business.

We’ll keep you informed of the status of your application by emailing  the business email address provided. Our advisors, Relationship Managers, banking centre and Contact Centre teams are unable to support the application process for this government loan.

• your application will be sent to the government for review. This entire process can take between 10 to 15 business days from the date that all required supporting documentation is received by the Government of Canada;
• approved clients will be notified via email, and receive their loan directly into your CIBC Business Operating Account;
• the deposit will be for the full amount of $40,000 and appear in your account as “credit memo CEBA loan advance”; and
• clients with declined applications will also be notified via email.

Contact the new Government of Canada CEBA Call Centre at 1-888-324-4201Opens your phone app. to receive clarification on the program eligibility criteria or non-deferrable expense document upload issues on the Export Development Canada (EDC) website, or make inquiries like “why was I declined?” or “why were my documents rejected?” about a status update on your CEBA application. CIBC is administering the Canada Emergency Business Account loan program on behalf of the federal government. The program eligibility criteria are defined by the Government of Canada. No organization involved in administering the CEBA program has the authority to grant exceptions, including CIBC, your financial institution. Visit Government of Canada website for more information.

Use your CRA Business Number to resume your application directly at the Government of Canada’s CEBA websiteOpens a new window in your browser.. Upload all your documents as evidence of incurred and projected amount of eligible non-deferrable expenses between $40,000 and $1.5 million for 2020.

Your application will be reviewed for eligibility and submitted to the Federal Government for funding. We won’t be able to provide updates on your application status until the government has provided a response, at which time, you’ll receive a confirmation email from CIBC and the $40,000 loan will be deposited into your existing CIBC Business Operating Account.

The $40,000 loan is interest-free. A quarter of the loan, $10,000, is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. If the loan can’t be repaid by December 31, 2022, it will be converted into a 3-year term loan charging an interest rate of 5%.

You have until December 31, 2022 to repay the loan without interest charges; however:

• If your loan application was approved before September 26, 2020, you can start principal repayments any time after October 1, 2020. 
• If your loan application was approved on or after September 26, 2020, you can start principal repayments any time after January 1, 2021.

A quarter of the loan, $10,000, is eligible for complete forgiveness if $30,000 is fully repaid on or before December 31, 2022. After this date, any outstanding principal is automatically converted into a 3-year term loan charging an interest rate of 5%.

The loan is interest-free until December 31, 2022. Furthermore, no principal repayments are required during this period, unless you are seeking to repay $30,000 to qualify for the $10,000 forgiveness feature. You can make a payment by speaking to your advisor or in-person at any banking centreOpens a new window in your browser..

If you choose to extend the loan beyond this date, interest of 5% applies during the extension period. While no principal repayments are required until December 31, 2025, it’s always good practice to make steady installment payments to match the incoming cash flows from your business operations.

Only the $10,000 forgivable portion of the CEBA loan is taxable, while the remaining $30,000 is considered a repayable loan and does not need to be declared. The $10,000 forgivable portion of the CEBA loan is taxable in the year in which the loan is received. 

You can declare the forgivable loan portion to the CRA for the year in which the loan is received either by including it in your business reported income, or by reducing the deduction for business expenses by the amount of the forgivable portion. For more information on how to do this, or if you have other questions on how to prepare your future tax returns, speak to the CRA or your accountant.

If your business is experiencing hardship due to COVID-19, you may be eligible to qualify for additional government relief measures, including:

• Business Development Bank of Canada (BDC) Co-Lending Program
• Export Development Canada (EDC) Business Credit Availability Program
• Other government programs, including:
  • Canada Emergency Wage Subsidy (CEWS)Opens a new window in your browser.
  • Temporary 10% Wage Subsidy for EmployersOpens a new window in your browser.
  • Canada Emergency Commercial Rent Assistance (CECRA)Opens a new window in your browser.
  • Regional Relief and Recovery Fund (RRRF)Opens a new window in your browser.
  • Work-Sharing ProgramOpens a new window in your browser.

On a case-by-case basis, we’ll work with our clients to find solutions to help address financial hardships caused by COVID-19. For qualifying clients, we’re offering temporary loan payment deferrals, cash management advice and other measures of support. Learn more about financial assistance options through CIBC

If your situation needs immediate attention, such as having a payment due in the next 48 hours, contact your CIBC Advisor.