Applications are now open for the Highly Affected Sectors Credit Availability Program (HASCAP). Through this program, businesses that have been heavily affected by the COVID-19 pandemic can access guaranteed, low-interest loans between $25,000 and $1 million.
The Business Development Bank of Canada (BDC) is working with financial institutions to administer the HASCAP loans, which will be 100% guaranteed by the federal government. Loans are available at a 4% interest rate with repayment terms of up to 10 years. Those who qualify may also have up to 12 months before principal repayment must begin.
Businesses in all sectors can apply as long as they meet the eligibility criteria.
- The business must be Canadian-based.
- The business must be able to demonstrate a monthly year-over-year decline of 50% in revenue the eight-month period prior to the date of application.
- The business must have been financially stable and viable prior to the COVID-19 pandemic.
- The loan must be used to either resume or continue operations.
- the loan cannot be used to pay or refinance existing debt.
The program will be available until June 30, 2021. Learn more by visiting this BDC webpage.