OTTAWA: Businesses across Canada that have been heavily impacted by COVID-19 can access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs.
Mary Ng, Minister of Small Business, Export Promotion & Trade, said the loans – Highly Affected Sectors Credit Availability Program (HASCAP) – are for small and medium-sized businesses that have seen their revenues decrease by 50% or more as a result of COVID-19.
The guarantee covers amounts ranging from $25,000 to $1 million to ensure a degree of continuity for your business through the pandemic.
The Government of Canada has mandated the Business Development Bank of Canada (BDC) to provide a guarantee to a financial institution for 100% of the value of a new term loan, to increase a company’s ability to access new credit.
• Companies can benefit from a 4% interest rate and a repayment term of up to 10 years.
• Up to a 12-month postponement of principal payments at the start of the loan. How to apply Contact your primary financial institution to find out more. Important: You can
apply at one financial institution only.
The program is available at some participating financial institutions as of February 1, 2021. Other participating financial institutions will deploy the program progressively over the days that follow.
Conditions:
• Your business is Canadian based.
• Your business must have been financially stable and viable prior to the current economic situation.
• You must have received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least three months (not necessarily consecutive) within the eight-month period prior to the date of the HASCAP Guarantee application.
• If your business does not qualify for CEWS and CERS, but otherwise meets all HASCAP eligibility criteria, you must provide financial statements that reflect three months (not necessarily consecutive) in which monthly year-over-year revenue decreased by at least 50% within the eight-month period prior to the date of the HASCAP Guarantee application. For details visit: https://www.bdc.ca/