Thanks to the lobbying efforts of the Hotel Association of Canada (HAC), the federal government has officially launched the Highly Affected Sectors Credit Availability Program (HASCAP). This is a new COVID-19 relief program to help the hardest-hit businesses with additional financing. Through this 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.
Terms of the Program:
Eligible businesses can start applying as early as February 1 at principal financial institutions and more widely by February 15.
As a first step, you must contact your primary financial institution to get more information and to apply.
You can only apply to one financial institution – your primary lender.
If your primary lender is not participating in the program, only then may you apply via another financial institution.
The program will be available until June 30, 2021
An applicant business must:
Be a commercial enterprise whose intent is to generate revenue from the sale of goods or services that is at least sufficient to cover its operating expenses and service its debt.
Have been financially stable and viable prior to the current economic environment.
Not have an impaired loan as at March 1, 2020, or the eligible loan closing date.
Other eligibility requirements may apply
You must also fall into one of the following categories:
You must provide Canada Revenue Agency attestation forms demonstrating a minimum 50% revenue decline, for at least 3 months, within the 8-month period prior to the date of your HASCAP application.
If your hotel did not receive CEWS or CERS and is eligible for it:
You must apply for CEWS or CERS.
If your hotel does not qualify for CEWS or CERS:
You must provide financial statements that reflect at least three months (which do not need to be consecutive) of monthly year-over-year revenue decrease of a minimum of 50% per month, within the 8-month period prior to the date of your HASCAP application.
Your financial institution will require the above information to process your request.