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Loan relief from CWB
I'm struggling to manage my cash flow given the impact of COVID-19. What relief is available from CWB?
CWB is committed to helping business clients experiencing financial stress as a result of COVID-19 on a case-by-case basis to ensure the solution fits with the client’s immediate and medium-term needs. Clients may benefit from flexible solutions on their commercial credit facilities, such as skip payments, interest only payments or an extended amortization, as appropriate to the individual situation. Please contact your Relationship Manager to discuss your options, including those announced by the federal government.
Read more about how we have your back during this uncertain time here
I’m self-employed and have a residential mortgage with CWB Optimum Mortgage. What’s the best way to discuss loan relief options?
CWB Optimum Mortgage is currently experiencing significant phone and email volume, so have created an online form to help manage requests for payment deferral. Once submitted, your request will join our queue and you can expect a response within five business days. Learn more about the financial hardship program in place
Business is very slow and I’ve received loan relief for the next few months. What more can I do to prepare for what comes next?
Over the next few weeks, feel free to reach out to your Relationship Manager to talk about the medium-term.
You should also:
- Create a new budget for the balance of the year by taking a close look at your revenues or anticipated revenues and determine if you’re able to cover your basic expenses. Talk to your accountant or bookkeeper for advice on whether to stay open, pause your business, shut down temporarily, or close your business indefinitely.
- Create a plan for business continuity by thinking through any opportunities to revise your business model (for example, moving your products online). Also consider any inputs to your business, like your supply chain, that may need to be revised or adapted due to pandemic situations and regulations in other provinces and countries.
- Review your commercial insurance policy to determine whether you are eligible for any coverage for business interruption. If you think you are eligible, call your provider to confirm.
- Stay in touch with your clients, suppliers, vendors, etc. by phone and email where possible. It’s best to know how others are weathering the situation so you have a sense of forthcoming challenges or opportunities.
Canada Emergency Business Account
Notice of extension
The CEBA application period has been extended. Applicants now have until June 30, 2021 to apply for a $60,000 CEBA loan or the $20,000 expansion.
What is the Canada Emergency Business Account (CEBA)?
The Canada Business Emergency Account provides qualifying business clients with access to a loan up to $60,000:
- Offers 0.00% interest with no monthly payments until December 31, 2022.
- Charges no fees.
- Allows principal repayments to be made anytime, without penalty.
- Allows for a $20,000 loan forgiveness when the outstanding balance ($40,000) is fully paid on or before December 31, 2022.
- Converts to an interest-only loan at 5.00% until December 31, 2025, if not paid in full by December 31, 2022. The loan must be paid in full by December 31, 2025.
Who can apply for the $20,000 expansion?
Businesses with a $40,000 CEBA loan may apply for the $20,000 expansion (even if they have started to pay back or fully repaid the original loan).
How can I apply for the $20,000 expansion?
Applicants must apply through the financial institution that provided you with your original CEBA loan. Contact your CWB Relationship Manager for support with applying for the $20,000 expansion.
Do I need to submit a new application for the $20,000 expansion?
Yes, you will need to submit a new application and attestation to CWB. You will not need to resubmit your original application or re-upload expense documents.
My application for the $20,000 expansion loan was not successful, how should I proceed?
Depending on the reason for which your $20,000 expansion application was not successful, you may be able to remedy your application. The government is working on new processes that will allow some businesses with an unsuccessful CEBA expansion application to submit corrected and/or additional information and attempt to remediate their original loan application.
- If this process applies to you, CWB will contact you with details on next steps. Applicants awaiting a process to submit additional information will have until May 7, 2021 to do so.
I didn't apply for the original $40,000 loan; can I still apply for a new $60,000 CEBA loan?
Yes, if you are new to the CEBA program and meet the Government of Canada’s eligibility requirements, you can apply for $60,000 of financial support.
How do I determine if I'm eligible for the Canada Emergency Business Account?
Complete the CEBA Pre-Screen Tool. The pre-screening tool helps inform small businesses whether they may or may not be eligible for a CEBA loan. To complete the assessment, you’ll need to provide your identification information, income and payroll information and 2020 eligible non-deferrable expenses. Be sure you are using one of the following compatible browsers: Chrome, Firefox, Edge, or Safari. The pre-screen is not part of the application. Once complete, please contact your Relationship Manager who will assist you with applying for a CEBA loan.
Businesses are eligible to apply through CWB if they meet all of the following criteria:
- You have or open an active business operating account at CWB.
- You have been in operation since before March 1, 2020, and are an operating business (holding companies, for example, are not eligible).
- You, as the applicant, have the ability and authority to bind the organization.
- Your organization’s payroll expense in the 2019 calendar year was between $20,000 and $1.5 million (Option A), or you are a Canadian-registered operating business with annual payroll less than $20,000 and with eligible non-deferrable expenses between $40,000 and $1,500,000 (Option B).
You will need to provide:
For Option A (meets basic payroll numbers):
- The CRA Payroll Number. This number is 15 characters with RP in the 10th and 11th characters (9 numbers, RP, 4 numbers – no other letters or sequence permitted).
- Their employment income reported in Box 14 of their 2019 T4 Summary (T4SUM). Company must be able demonstrate this information by presenting a 2019 T4SUM when requested upon audit.
For Option B (meets payroll and non-deferrable expense numbers):
- The non-payroll Business Number. This number is 9 digits only, no letters (will be the first 9 digits of any of their 15 digit BN numbers).
- Tax year of their most recent tax filing and their business income (T1). The Attestation includes an income table to be completed by self-employed or other unincorporated businesses.
- Evidence supporting the amount of eligible non-deferrable expenses uploaded to the secure EDC web portal: http://applicati1n-demande.ceba-cuec.ca) Note that the EDC link will NOT work in Internet Explorer (IE) or older versions of MS Edge. Clients must use Chrome, Firefox or Edge v.83 or newer)
- Eligible Non-Deferrable Expenses are listed on the Attestation. Note that if your eligible expenses includes regularly scheduled debt service, you will need to contact your branch to obtain a payment schedule to support your application.
As per the requirements of the program set out by the Government of Canada, you will agree to use funds from this loan to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, insurance, and property tax.
You are not applying for this program at any other financial institution.
You understand that applying for this benefit at more than one financial institution, as outlined as part of the government program, may result in prosecution by the federal government.
What non-deferrable expenses are eligible?
· Wages and other employment expenses to independent (arm’s length) third parties
· 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 business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet
· Payments for regularly scheduled debt service. Note that if your eligible expenses includes regularly scheduled debt service, you will need to contact your branch to obtain a payment schedule to support your application.
· Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business
For information about other programs offered through the Government of Canada that will cause adjustments to the amount of eligible non-deferrable expenses for 2020, visit www.ceba-cuec.ca.
What information do I need to apply for the Canada Emergency Business Account?
If you cannot locate your business’ 2019 T4 Summary of Remuneration Paid, contact the Canada Revenue Agency at 1-800-959-5525 and ask for a reissue.
My business requires the consent of more than one director or officer to bind my organization. Can I still apply?
I have multiple businesses with their own business operating accounts at CWB. Can I apply for the Canada Emergency Business Account for each business?
The federal government announced expanded eligibility criteria for the Canada Emergency Business Account on October 26. Am I eligible now?
Updates to CEBA eligibility announced on October 26 are as follows:
Applicants are no longer required to have a CWB business operating account opened on or prior to March 1, 2020. They can now open a business account any time prior to the CEBA application.
Who do I contact if I have questions about my CEBA application or loan status?
Contact your Relationship Manager if you have questions about your eligibility, the application process and for final decisions on completed application forms.
If you have submitted your application and have questions about the status of your loan, visit EDCs loan status website. Please allow 5 to 7 business days before checking your status. If you continue to have questions after checking the website, you can call the CEBA Call Centre at 1.888.324.4201. Callers will be asked to leave a callback number. An agent will return your call between Monday and Friday from 10:00 am to 9:00 pm EST.
I do not qualify or have been declined for the Canada Emergency Business Account. Where can I get more information?
To find out why your application was declined, you can contact the CEBA Contact Centre at 1.888.324.4201. Callers will be asked to leave a callback number. An agent will return your call between Monday and Friday from 10:00 am to 9:00 pm EST.
You can also visit the CEBA website for further details about the program.
EDC BCAP Loan Guarantee
What is the EDC BCAP Loan Guarantee Program?
The EDC BCAP Loan Guarantee Program offers eligible businesses new operating lines of credit or term loans of up to $6.25 million, with 80% guaranteed by Export Development Canada. Funds must be used to finance the Borrower’s normal business/commercial operations in response to the impact of COVID 19. This includes recurring expenses like payroll, rent, ordinary course of business lease, equipment, or supplier financing payments, and other normal course of business operating expenses. Also includes normally scheduled interest payments or repayment of temporary advances or borrowing excesses on facilities advanced to the Borrower after March 1, 2020. Borrowers can also use funds for capital expenditures if part of their normal business/commercial operations. Repayment schedules will be determined on a case-by-case basis.
This program features:
- A loan term for up to 5 years, with 80% guaranteed by EDC
- Loan subject to annual review with renewal submitted to EDC.
- A 1.8% fee to EDC on the authorized loan amount that will be deferred for six months
- Loan is repayable in full on maturity.
How do I determine if I'm eligible for the EDC BCAP Loan Guarantee Program?
Businesses are eligible to apply through CWB if they meet all of the following criteria:
- Are a Canadian-based business with a current CRA Business Number (BIN) and has operations in Canada.
- Are a client in good standing with CWB.
The following organizations also qualify under this program:
- Not-for-profit organization, registered charity, union, or fraternal benefit society or order, or an entity owned by such an organization, and actively carrying on a business in Canada (including a related business in the case of a registered charity) earning revenue from the regular supply of property/goods or services, for the Borrower’s business operations that earns revenue from the regular supply of such property/goods or services.
- Indigenous community-owned corporations where such corporations make payments back to Band councils and communities in the form of dividends to support community operations and members (such as social programs, food programs, income support, etc.). The term “Band” in the preceding sentence shall have the meaning ascribed to it in the Indian Act, RSC 1985, c I-5.
Entities that promote violence, incite hatred or discriminate on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age or mental or physical disability, contrary to applicable laws, are not eligible.
All applicants must complete and receive a BCAP Successful Application Confirmation through EDC prior to commencing their formal application with CWB.
Does my business need to be exporting given that the program is run through Export Development Canada?
No, this program is available to all Canadian businesses regardless of whether they export or not, subject to the eligibility criteria outlined above.
I have an existing loan facility with EDC. Can I use EDC BCAP Guarantee Program to top it up?
No, this program cannot be used to support an existing facility. It must be used on a new facility with the intent to use the funds for incremental liquidity in response to the impact of COVID-19.
Continuing to manage and access your business banking
How can I take care of my business banking needs while I work remotely?
Business owners can do many of their banking activities online or by mobile with CWBdirect Online Banking and CWBdirect Business Online Banking. You can:
- View detailed balance and transaction reports for both your business and personal accounts
- Transfer funds, and pay bills and taxes
- Send, request and receive Interac® e-transfers
- Deposit cheques
- Upload and download payment files
- Customize access based on the needs of your employees
Don’t have online banking but want to sign up? We can do that remotely when you reach out to your Relationship Manager or the nearest CWB branch.
With my employees now working remotely, we’re finding it difficult to obtain the correct signing authority on physical cheques required for suppliers, etc. What can we do?
CWB offers a variety of ways to ensure you can continue to make payments including electronic funds transfer to pay vendors, suppliers and payroll. Business clients can also use our tools to collect funds electronically, like rent or lease payments for example. If you’re currently not set up and would like to be, please contact your Relationship Manager or Cash Management Specialist to discuss your options.
I need to deposit cheques, but don’t want to come into a branch. What are my options?
CWB has a number of products to help business clients deposit cheques. Our three most popular, not requiring face-to-face transactions, are:
- Deposit Anywhere via CWB’s mobile app.
- Remote Deposit Capture which allows businesses to deposit large quantities of cheques with a specialized scanner in your office.
- Our Day/Night Depository Service, available via a mail slot at all CWB branches. Note that staff are actively managing this service for same day credit, regardless of whether the branch is open to the public at this time.
I have a CWB Visa Business Card. How can I find out about my travel insurance coverage related to COVID-19?
You can also log in to MyCardInfo for self-serve options including account monitoring and management, viewing available credit, and online claims submissions.
How can I set up direct deposit for my Canada Revenue Agency (CRA) payments?
Visit our CRA direct deposit page for immediate access to your CRA payments and benefits, including the new Canada Emergency Response Benefit.