The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, recently announced the launch of the Highly Affected Sectors Credit Availability Program, or HASCAP. As first outlined in the 2020 Fall Economic Statement, HASCAP will provide financial support to businesses that have been hardest hit by the pandemic.
Businesses across Canada continue to feel the effects of the COVID-19 crisis. Whether they are operating at limited capacity, switching to online-only services or suspending their operations entirely, many businesses have been strongly affected. Just as these businesses have stepped up for the health and safety of their communities, the government is once again stepping up for them.
Through HASCAP, 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. Hard-hit businesses, like a chain of hotels or restaurants with multiple locations under one related entity, could be eligible for up to $6.25 million. HASCAP will help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in their longer-term prosperity.
HASCAP is available to businesses across the country, in all sectors, that have been hit hard by the pandemic. This includes restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.
To be eligible for HASCAP, businesses need to show a year-over-year revenue decline of at least 50 per cent in three months, within the eight months prior to their application. They must also be able to show their financial institutions that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
“Since day one of the COVID-19 crisis, our government has been there to support Canada’s businesses and the millions of Canadians they employ. We know that even the most resilient businesses continue to face incredible challenges. We are launching the Highly Affected Sectors Credit Availability Program to help those businesses hit hardest by the pandemic with low-interest, government-backed loans. By investing in Canada’s businesses, as well as workers and their families, we are investing in our shared recovery and a better future for all,” said The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade.
“The pandemic has affected employers across sectors and had a tremendous impact on the jobs and lives of Canadians and Canadians families. Our COVID-19 support programs have worked to protect millions of jobs, but we know that the second wave of this virus continues to weigh on many workers and businesses. HASCAP gives those in highly affected sectors—like tourism, hospitality, arts and culture—new support so they can weather this storm and be ready for a robust recovery that will create jobs and strengthen the middle class,” said The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance.
More information is available at www.bdc.ca/hascap.