Yesterday, the Federal Government announced the launch of the Highly Affected Sectors Credit Availability Program (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 including those in the tourism and hospitality industry and those that rely on in-person service.
Through HASCAP, the Business Development Bank of Canada will work with participating Canadian financial institutions to offer 100 per cent 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 can be used for day-to-day operating costs during the COVID-19 crisis and for investments into longer-term prosperity.
To be eligible for HASCAP, businesses need to:
- Show a year-over-year revenue decline of at least 50 per cent in three months, within the eight months prior to their application; and
- Show financial institutions their previous applications for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
Eligible businesses can start applying as early as Feb. 1 at their principal financial institutions, with the application process remaining open until June 30, 2021. As many applications to the program are expected, we encourage you to apply early. More information is available here .