HASCAP Loan Program: What Canadian Businesses Need to Know
If your small business has been hard-hit by the economic effects of COVID-19, you may be eligible for the Highly Affected Sectors Credit Availability Program (HASCAP).
HASCAP offers low-interest loans, of up to $1 million per entity, over an extended term to help manage business continuity expenses.
The Government of Canada has mandated BDC to provide a guarantee to your financial institution for 100% of the value of a new term loan, to increase your company’s ability to access new credit.
Is my business eligible?
Your primary financial institution will determine whether you qualify for this program, based on the eligibility criteria established by the Government of Canada.
Neither BDC nor your financial institution has the authority to grant exceptions to eligibility criteria.
That being said, the following eligibility requirements apply for the financing:
- Your business is Canadian based.
- Your business must have been financially stable and viable prior to the current economic situation.
- You must have received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least three months (not necessarily consecutive) within the eight-month period prior to the date of the HASCAP Guarantee application.
- If your business does not qualify for CEWS and CERS, but otherwise meets all HASCAP eligibility criteria, you must provide financial statements that reflect at least three months (not necessarily consecutive) in which monthly year-over-year revenue decreased by at least 50% within the eight-month period prior to the date of the HASCAP Guarantee application.
- The loan will be used to continue or resume operations.
- The loan cannot be used to pay or refinance existing debts.
- Minimum risk ratings will apply, varying by size of new loan.
- You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million (all legal entities combined).
- Other conditions may also apply.
Contact your primary financial institution to find out more.  Important: You can apply at one financial institution only.
For more information as well as explanatory webinars and fact sheets, click here.
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Source: BDC