As a professional, I understand the importance of creating content that is both informative and optimized for search engines. In this article, we will discuss the CIBC CEBA term loan agreement, its features, benefits, and eligibility requirements.
What is the CIBC CEBA term loan agreement?
CEBA stands for Canada Emergency Business Account, a program that provides interest-free loans to small businesses affected by the COVID-19 pandemic. The CIBC CEBA term loan agreement is a loan product offered by the Canadian Imperial Bank of Commerce (CIBC) under the CEBA program. This loan is designed to help eligible small businesses cover their operating expenses during the pandemic.
Features of the CIBC CEBA term loan agreement
The CIBC CEBA term loan agreement offers the following features:
1. Interest-free for the first year: This loan is interest-free for the first year. After the first year, a 5% interest rate will apply.
2. No principal payments for the first year: There are no principal payments required for the first year. After the first year, the loan must be repaid over the remaining four years of the term.
3. Flexible repayment options: Borrowers have the flexibility to repay the loan at any time without penalty.
4. No personal guarantee required: No personal guarantee is required to obtain this loan.
5. Access to other CIBC business services: Borrowers will have access to other CIBC business services, such as online banking and mobile banking apps.
Benefits of the CIBC CEBA term loan agreement
The CIBC CEBA term loan agreement provides the following benefits:
1. Financial support for small businesses: This loan provides financial support to small businesses that have been affected by the COVID-19 pandemic.
2. Interest-free for the first year: The interest-free period for the first year can help businesses manage their cash flow during the pandemic.
3. No personal guarantee required: The lack of a personal guarantee requirement can help small business owners who may not have personal assets to secure a loan.
4. Easy to apply for: The application process for the CIBC CEBA term loan agreement is simple and can be completed online.
Eligibility requirements for the CIBC CEBA term loan agreement
To be eligible for the CIBC CEBA term loan agreement, businesses must meet the following criteria:
1. Have an active CIBC business bank account as of March 1, 2020.
2. Have an annual payroll of between $20,000 and $1.5 million in the 2019 calendar year.
3. Have applied for and received the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS).
4. Have not previously applied for the CEBA loan through another financial institution.
Conclusion
The CIBC CEBA term loan agreement is a loan product offered by CIBC under the CEBA program. This loan provides financial support to eligible small businesses affected by the COVID-19 pandemic. Its features include an interest-free period for the first year, no principal payments for the first year, flexible repayment options, and no personal guarantee requirement. Eligibility requirements include having an active CIBC business bank account, meeting certain payroll criteria, and having applied for and received the CEWS or CERS. Overall, the CIBC CEBA term loan agreement is a helpful resource for small businesses struggling during the pandemic.