Applications for the Highly Affected Sectors Credit Availability Program Available Now

The Highly Affected Sectors Credit Availability Program (HASCAP), originally announced as a part of the Fall Economic Statement in November of 2020, is now open for applications. This program allows small and medium-sized businesses that have experienced a minimum 50% revenue decrease due to the COVID-19 pandemic, to access guaranteed, low interest loans ranging from $25,000 to $1 million. Loans received through this program are guaranteed to the financial institution by BDC for 100% of the value of a new term loan. The terms of the loan include a 4% interest rate, a repayment term of up to ten years, and up to 12-months of postponement of principal payments from the start of the loan. Applications for this program are accessed through a business’s primary financial institution and are available until June 30, 2021.

To be eligible for the HASCAP, a company must:

• Be based in Canada.
• Have been financially stable and viable prior to the pandemic.
• Have received payments from the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) within the eight month period prior to the date of a HASCAP Guarantee application.
  • If a business does not qualify for CEWS or CERS but meets the other HASCAP criteria, the business must provide financial statements that reflect a minimum 50% year over year revenue decline for at least three months (not necessarily consecutive) within the eight month period prior to the date of the HASCAP Guarantee application.

Other important information about the HASCAP:

• These funds must be used to continue or resume operations but cannot be used to pay or refinance existing loans.
• This program is not limited to specific sectors and is open to all Canadian businesses that meet the eligibility criteria. 
• A business owner can apply for a loan under the HASCAP Guarantee for each legal entity they own, to a maximum combined amount of $6.25 million.

More information on the HASCAP can be found here. To apply for this loan, you must contact your business’s primary financial institution. If you have any questions about the HASCAP or any other COVID-19 support programs for businesses, please reach out to your Bateman MacKay Business Advisor.