Highly Affected Sectors Credit Availability Program (HASCAP)

HASCAP

What is HASCAP?

HASCAP provides low- interest loans of $25k to $1M to businesses heavily affected by COVID 19. HASCAP is available to businesses that operate in sectors such as tourism and hospitality, restaurants, and those that primarily rely on in-person services. This program is available at some participating financial institutions.

HASCAP offers a 4% interest rate, repayment term of up to 10 years and up to 12-month postponement of principal payments at the start of the loan. 

Government of Canada has mandated BDC to provide a guarantee to your financial institution for 100% of the value of a new term loan

  • Eligibility criteria:
    o   Your business is Canadian based.
    o   Your business must have been financially stable and viable prior to the current economic situation.
    o   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.
    o   The loan will be used to continue or resume operations.
    o   The loan cannot be used to pay or refinance existing debts.
    o   Minimum risk ratings will apply, varying by size of new loan.
    o   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).
    o   Other conditions may also apply

Source:  https://www.bdc.ca/en/special-support/hascap?ref=shorturl-hascap 

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