On January 27th, 2021 the government announced the launch of the Highly Affected Sectors Credit Availability Program (HASCAP). Through this program, businesses in the sectors that have been heavily impacted by COVID-19 can access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs.
About the Program: 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. The program is open to Canadian-based businesses in all sectors that have been hit hard by the pandemic, including restaurants, businesses in the tourism and hospitality sectors, and businesses that rely on in-person service.
Eligibility: Businesses need to show a year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application. Businesses are also required to have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
How to Apply: Businesses can start applying as of February 1 at principal financial institutions and more widely by February 15. To apply and get more information about the program, businesses should contact their primary lender. You can learn more about the program on the government's website.