On January 26, 2021, Finance announced the launch of the Highly Affected Sectors Credit Availability Program or HASCAP. As first outlined in the 2020 Fall Economic Statement, HASCAP will provide financial support to businesses that have been hardest hit by the pandemic.
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. Hard-hit businesses, like a chain of hotels or restaurants with multiple locations under one related entity, could be eligible for up to $6.25 million. HASCAP will help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in their longer-term prosperity.
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.
The loans will range from $25,000 – $1,000,000 with repayment terms of up to 10 years and borrowers will have the ability to postpone principal payments for up to 12 months at the start of the loan.
The HASCAP Guarantee is available until June 30, 2021.
Your primary financial institution will determine whether you qualify for this program, based on the eligibility criteria established by the Government of Canada.
Requirements are as follows: