(Dreamstime)

By David Opinko

Ottawa announces “highly-affected sectors” loan program

Jan 26, 2021 | 12:05 PM

LETHBRIDGE, AB – If your business has been severely impacted by the COVID-19 pandemic, a new program from the federal government might offer some assistance.

Applications are now open for the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee.

HASCAP offers low-interest loans between $25,000 and $1-million to small and medium-sized businesses that have seen their revenues decrease by at least 50 per cent as a result of the pandemic.

Some examples of eligible entrepreneurs could include those in restaurants, businesses in the tourism and hospitality sectors, and those that rely on in-person service.

“Since day one of the COVID-19 crisis, our government has been there to support Canada’s businesses and the millions of Canadians they employ,” says Mary Ng, Minister of Small Business, Export Promotion, and International Trade. “We know that even the most resilient businesses continue to face incredible challenges.”

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“We are launching the Highly Affected Sectors Credit Availability Program to help those businesses hit hardest by the pandemic with low-interest, government-backed loans. By investing in Canada’s businesses, as well as workers and their families, we are investing in our shared recovery and a better future for all,” adds Ng.

The official document from the Business Development Bank of Canada (BDC) says businesses must have been financially stable and viable prior to the current economic situation.

As well, they “must have received payments 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.”

The program will be available at some participating financial institutions as of February 1, 2021. Other financial institutions will launch the program in the days that follow.

Applications will be accepted until the end of June.

Full details on HASCAP are available here.