On January 26, 2021, details of the Highly Affected Sectors Credit Availability Program were announced.
Through HASCAP, the Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to offer government-guaranteed, low-interest loans of up to $1 million. Chains and multiple-location businesses could be eligible for up to $6.25 million.
HASCAP is available to businesses across the country, in all sectors, that have been hit hard by the pandemic. This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.
Terms of loans:
low interest with a repayment term of up to 10 years
up to a 12 month postponement of principal payments
available until June 30, 2021
To be eligible:
a year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application;
have previously applied for either CEWS or CERS (an alternative method for application using financial statement submission will be available); and
have been financially stable and viable pre-COVID
Eligible businesses can start applying as early as February 1 at principal financial institutions and more widely by February 15. Interested businesses should contact their primary lender to get more information and to apply.