HASCAP Benefit Provides Loans to Pandemic-Affected Businesses
/In January, the Minister of Small Business, Export Promotion and International Trade Mary Ng announced the launch of the Highly Affected Sectors Credit Availability Program (HASCAP). This new relief measure was first unveiled in the Fall Economic Statement late last year.
Through HASCAP, the Business Development Bank of Canada (BDC) has been mandated to provide a guarantee to Canadian financial institutions to help businesses heavily impacted by COVID-19 access additional liquidity and cover operating costs, as follows:
loans ranging from $25,000 to $1 million to qualifying businesses;
hard-hit businesses such as a hotel or restaurant chain with multiple locations under one entity could be eligible for up to $6.25 million;
low-interest loans and repayment terms of up to 10 years;
up to a 12-month postponement on principal repayments at the start of the loan; and,
BDC will provide a guarantee to the financial institution for 100% of the value of the loan.
Eligibility requirements:
The business must have been financially stable and viable before the current economic situation;
Businesses need to show a year-over-year revenue decline of at least 50% in three months, within the eight months before their application;
The loan will be used to continue or resume operations;
The business must be Canadian based; and,
The business must have previously applied for either the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS).
To confirm eligibility and apply to HASCAP, you will need to contact your primary financial institution. Eligible businesses can apply at their principal financial institutions. HASCAP will be available to businesses in all sectors until June 30, 2021.
