Guaranteed Low-interest Loans for Businesses Heavily Impacted by COVID-19
The Highly Affected Sectors Credit Availability Program (HASCAP) provides guaranteed, low-interest loans to cover operational cash flow needs of small and medium-sized Canadian businesses. The deadline to apply is approaching and business owners should be aware of this potential crucial financing source to help their COVID-19 recovery. See further information below and visit this BDC website for details and frequently asked questions.
What: Loans between $25,000 to $1 million with a 4% interest rate to continue or resume operations. The loan has repayment terms of up to 10 years and principal payments may be postponed for up to 12 months from the loan’s inception.
Who: Canadian businesses that were financially stable and viable prior to the pandemic and have received CEWS or CERS payments by demonstrating a minimum 50% revenue decline for at least three months (not necessarily consecutive) within the eight-months prior to applying for the HASCAP.
When: The program is available until June 30, 2021.
Where: Contact your primary financial institution to apply.
How: The loans are provided through your business’s primary financial institution and 100% guaranteed by BDC. Business owners must demonstrate the 50% revenue decline, their historical receipt of CEWS or CERS payments and provide the applicable CRA attestation forms. If a business is not eligible for CEWS and CERS, financial statements that reflect the three-month, year over year, 50% revenue decline should be provided.
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