TORONTO, April 8, 2020 /CNW/ - Starting tomorrow, BMO small and medium business clients can apply for the Canada Emergency Business Account (CEBA) directly from the bank's COVID-19 business support page. The account is part of the federal government's loan program for Canadian small businesses and complements the dedicated relief measures previously announced by BMO to support Canadian businesses affected by COVID-19.
"Our commitment, as it has always been, is to stand by and support our clients," said Andrew Irvine, Head, Canadian Business Banking, BMO Bank of Montreal. "We know that small businesses, in particular, are feeling a financial burden and we're working with thousands of clients to help them tap into relief funds as quickly as possible. This new account will provide additional stability for clients as we continue to navigate this situation together."
The Canada Emergency Business Account is a government guaranteed loan of up to $40,000 that is interest-free until December 31, 2022. The loan is available to help businesses with operating costs during COVID-19. Twenty-five percent of the loan amount ($10,000) is eligible for forgiveness as long as the business pays back $30,000 on or before December 31, 2022. If the business cannot pay back the loan by December 31, 2022, it can be converted into a 3-year term loan at an interest rate of 5%.
Full criteria for eligible businesses, as well as the application to apply, can be found on BMO's COVID-19 business support page. BMO is reminding customers that this program will only be available online via its COVID-19 business support page.
How BMO is supporting business clients
The CEBA expands upon existing measures previously announced by BMO in support of Canadian small and medium businesses. Additional relief measures include:
- Deferral of payment on small business credit cards and credit lines
- Payment deferral on the principal of a small business loan
- Increases on small business operating lines to help with short-term working capital. For clients requesting an increase on an operating line, BMO may advance payroll to help ensure consistency with employee pay
BMO has helped over 70,000 personal and business banking clients with relief measures and continues to work with thousands of clients on a daily basis to provide relief.
BMO is advising clients to sign up for Online Banking, Mobile Banking, and Online Banking for Business, as applicable. Business clients are encouraged to visit the bank's COVID-19 page for regular updates.
To enroll in Canada Revenue Agency's direct deposit for benefit payments, visit: https://www.bmo.com/main/personal/ways-to-bank/cra-direct-deposit/?ecid=va-US48523EDB1-DMBMO14
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $880 billion as of January 31, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets.
SOURCE BMO Financial Group