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

Eligibility: 

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:

  • If your hotel has received the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS):
    • 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.
Find Out More

Questions about HASCAP?

The Hotel Association of Canada (HAC) hosted a Q&A webinar with experts from the Business Development Bank of Canada (BDC). Watch the video here.

HAC FAQs about HASCAP