On January 26th, the Government of Canada announced the Highly Affected Sectors Credit Availability Program (HASCAP). As early as February 1st at some financial institutions, application for the HASCAP will be available for those most affected by COVID-19 closure regulations.
What is HASCAP?
HASCAP is financial pandemic support for businesses in tourism and other sectors that have been hardest hit by the COVID-19 closure regulations.
Low interest loans from $25,000 to $1 million are available and secured by the Government of Canada with repayment terms of up to 10 years. The loan is to be used to continue or resume operations and can not be used to pay or refinance existing debt. Businesses with multiple affected locations under one entity may be eligible for a loan of up to $6.26 million.
The loan has an additional benefit of a 12-month postponement period on principal payments, beginning from the time the loan is advanced.
Applications are open until June 30, 2021.
Is my business eligible?
- You must be a Canadian based business that experienced a revenue decline of 50% or more for at least 3 months (non-consecutive) within the 8-month period prior to the HASCAP guarantee application.
- Your business must have been financially stable prior to the current economic situation and been in operation before March 1, 2020.
- Your business must have received payments from CEWS (Canada Emergency Wage Subsidy) or CERS (Canada Emergency Rent Subsidy).
All guidelines are set up by the Government of Canada and financial institutions cannot grant eligibility exceptions.
How to apply?
Contact your primary financial institution:
- Applications for HASCAP are only through your current financial institution. Applications start at some financial institutions as early as February 1st, and each day until February 15th, more financial institutions will be able to accept applications for HASCAP.
- You will need a copy of your CEWS or CERS Canada Revenue Agency attestation forms to demonstrate the minimum 50% revenue decline to process the request.
- If you have not received CEWS or CERS and are eligible, you NEED to apply for one or both first.
- If you do not qualify for CEWS or CERS, you must provide financial statements that reflect year over year a minimum decrease in revenues by 50%
Questions For Us?
Contact our office today for more information.