News

I hope everyone and your families are healthy. The Federal Government released another option for those significantly affected by COVID-19. The Highly Affected Sectors Credit Availability Program (HASCAP), long hinted at, has been released and is available until June 30, 2021. This is a loan option, NOT a subsidy or grant. These loans are for small and mid-sized businesses that have seen their revenues decrease by 50% or more as a result of COVID-19 for at least 3 months in the last 8 month period before application. The government has mandated that BDC (Business Development Corporation) provide a 100% guarantee for the value of the new term loan. The loans range from $25,000 to $1 million with a 4% interest rate, up to 10 year repayment terms and 12 months of principle repayment postponement. Companies that believe they are eligible apply through their primary financial institution.

Eligibility requirements are determined by your financial institution based on the requirements mandated by the federal government. The requirements are:

  • Your business is Canadian based.
     
  • Business must have been financially stable before COVID-19.
     
  • Your business must have received payments from Canada Emergency Wage Subsidy (CEWS) or Canada Emergency Rent Subsidy (CERS) having demonstrated at least a 50% revenue decline for 3 or more months in the 8 months prior to the program application. If your business did not qualify for CEWS or CERS you must provide financial statements showing a 50% year over year drop in revenue for 3 of the 8 months before your application.
  • The loan is used to continue or resume business
     
  • The loan CANNOT be used to pay or refinance existing debt.
     
  • Minimum risk rating will apply varying by loan size.
     
  • You can apply for a loan for each legal entity you own to a maximum combined amount of $6.25 million.
     
  • Other conditions may apply

If you have any questions your primary lending institution should be able to help, or, contact us and we would be happy to review the program with you.

Stay Healthy
Greg Libbrecht and the team at Platinum Business Services