HASCAP Guarantee Loans
Highly Affected Sectors Credit Availability Program (HASCAP)
The Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to offer fully guaranteed, low interest loans from $25,000 up to $1 million to help qualifying businesses finance their daily operational costs. You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million.
Loans provided will be low interest (4%) with repayment terms of up to 10 years and up to a 12-month postponement on principal repayments at the start of the loan. No personal guarantees will be required. Instead the loans are 100% guaranteed by the BDC.
Canadian-based businesses that were financially stable and viable prior to the current economic situation and have been in operation as of March 1, 2020
The business must have:
demonstrated a minimum 50% revenue decline for at least 3 months (this does not have to be consecutive) within the 8-month period prior to the HASCAP application; and
received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Rent Subsidy (CERS)
Please note, if your business did not apply for CEWS or CERS and is eligible for it, you must apply for CEWS and/or CERS. If your business does not qualify for CEWS or CERS, financial statements must be provided that reflect 3 months (this does not have to be consecutive) in which monthly year-over-year revenue decreased by at least 50% within the 8-month period prior to the HASCAP application.
What can this loan be used for
This loan can be used to pay for daily operating expenses such as rent, salaries, and general expenses in order to continue or resume operations.
This loan cannot be used to pay off or refinance existing loans
How can businesses apply for this loan
Businesses can apply for the HASCAP loan at their principal financial institution. Only one application per legal entity.
Applications are open until June 30, 2021.
Assistance is Available
CORSolutions provides businesses
with independent advice and assistance with applying for HASCAP loans and other available COVID relief
loans and subsidies. We can assist you with:
Collecting and vetting the documents for your application
Assisting with your registration at BDC
Preparing forecasts and business dialogues as required
Leading discussions with the bank
Looking for other potential funding
or email us directly at email@example.com