Saturday, May 28, 2022
HomeHow toHASCAP loan Canada

HASCAP loan Canada

HASCAP loan Canada  – HASCAP

 

BDC is Canada’s entrepreneur bank. The Government of Canada has mandated BDC to issue the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee through financial institutions to qualified firms afflicted by the current pandemic.
COVID-19-affected businesses can get guaranteed, low-interest loans ranging from $25,000 to $1 million to support their operational cash flow needs.

What is the benefit of HASCAP loan?

Small and medium-sized firms that have witnessed a 50% or more drop in revenue as a result of COVID-19 are eligible for these loans.

  • The guarantee covers values ranging from $25,000 to $1 million, ensuring that your business can continue to operate during the epidemic.
  • To improve your company’s capacity to receive additional financing, the Government of Canada has mandated that BDC give a guarantee to your financial institution for 100% of the value of a new term loan.
  • Take advantage of a 4% interest rate and a repayment duration of up to ten years. At the start of the loan, you can defer principal payments for up to a year.
  • Until March 31, 2022, the HASCAP Guarantee is accessible (extended).

 

Is HASCAP.ca a federal or provincial government website?

No. This website was created by a Canadian entrepreneur who worked in a highly-affected COVID-19-affected field. This website was designed to collect and disseminate information regarding HASCAP loans and the government’s HASCAP program because there was a scarcity of information.

 

Eligibility requirements for Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee

Based on the qualifying requirements specified by the Government of Canada, your principal financial institution will assess whether you qualify for this program. BDC and your financial institution do not have the authority to make exceptions to eligibility requirements.

  • Your company is based in Canada.
  • Prior to the current economic circumstances, your company had to be financially solid and viable.
  • The funds will be used to keep or restart operations.
  • Existing debts cannot be paid off or refinanced with the loan.
  • Minimum risk ratings will apply, which will vary depending on the size of the new loan.
  • For each legal entity you control, you can request a loan under the HASCAP Guarantee, up to a total of $6.25 million (all legal entities combined).

You must have received payment from one of the following sources:

  • Canada Emergency Subsidy (CEWS) and/or
  • Canada Emergency Rent Subsidy (CERS) and/or
  • Tourism and Hospitality Recovery Program (THRP) and/or
  • Hardest-Hit Business Recovery Program (HHBRP) and/or
  • Canada Recovery Hiring Program (CRHP)

 

How do I know if I’m eligible for the HASCAP Guarantee?

Prior to the current economic circumstances, your company must have been financially healthy and viable, and it must have been in operation as of March 1, 2020. Other conditions apply, which your principal lender will spell out.

Your company has been awarded the following:

 Your business has received* the:

  • Canada Emergency Wage Subsidy (CEWS) and/or
  • Canadian Emergency Rent Subsidy (CERS) and/or
  • Tourism and Hospitality Recovery Program (THRP) and/or
  • Hardest-Hit Business Recovery Program (HHBRP) and/or
  • Canada Recovery Hiring Program (CRHP)

Make sure you have shown a minimum 50% revenue reduction for at least 3 months during the last 8 months prior to the date of your HASCAP Guarantee application when you apply.

Your company qualifies for one of these five programs despite not having received funds from the above-mentioned programs. You must first apply for and receive* the following:

  • Canada Emergency Wage Subsidy (CEWS) and/or
  • Canadian Emergency Rent Subsidy (CERS) and/or
  • Tourism and Hospitality Recovery Program (THRP) and/or
  • Hardest-Hit Business Recovery Program (HHBRP) and/or
  • Canada Recovery Hiring Program (CRHP)

 

You must show that your company has experienced a minimum 50% revenue loss for at least 3 months and within the last 8 months prior to submitting your HASCAP Guarantee application.

If the business does not qualify for the above-mentioned programs, it must provide financial statements showing a monthly year-over-year revenue decrease of at least 50% per month for at least 3 months (which do not have to be consecutive) within the 8-month period prior to the date of your HASCAP Guarantee application.

During the application process with your banking institution, your business will be asked to present CEWS, CERS, THRP, HHBRP, or CRHP attestation forms demonstrating required revenue decline [and proof of payment under the Program (through bank statements or canceled cheques)].

How to apply for HASCAP

Contact your primary financial institution to apply. It is the only one who can give you an update on your application’s status. BDC does not have access to the specifics of your request. The list of financial institutions that are taking part can be found here.

At partner financial institutions, the initiative is currently available to business owners. They are as follows:

Is there anything I can do to speed up the process by preparing my HASCAP Guarantee loan request?

If your company has received funds from the following sources, you can apply.

  • Canada Emergency Wage Subsidy (CEWS) and/or
  • Canadian Emergency Rent Subsidy (CERS) and/or
  • Tourism and Hospitality Recovery Program (THRP) and/or
  • Hardest-Hit Business Recovery Program (HHBRP) and/or
  • Canada Recovery Hiring Program (CRHP)
  1. Make sure you have your Canada Revenue Agency attestation paperwork on hand when you apply, proving a minimum 50% revenue reduction for at least 3 months within the 8-month period before the date of your HASCAP Guarantee applications. To process your request, your financial institution will need this information.
  2. If your business is eligible for one of the above-mentioned programs but has not received payments, you must apply and have received payments from one of the above-mentioned programs by demonstrating a minimum 50% revenue decline for at least three months (not necessarily consecutive) within the eight-month period prior to the HASCAP Guarantee application. To process your request, your financial institution will need this information.
  3. If your business does not qualify for the above-mentioned programs, you must provide financial statements that show a monthly year-over-year revenue decrease of at least 50% per month for at least three months (which do not have to be consecutive) within the eight months prior to the HASCAP Guarantee application date. To process your request, your financial institution will need this information.

Where can I find out whether my HASCAP Guarantee application has been approved?

Consult your primary banking institution.

 

Your major financial institution should be your only point of contact because it is in charge of administering this program and is the only one who can update you on the status of your application.
The details of your request are not accessible to BDC.

What should I do if my company’s application is rejected?

  • The financial institution will notify all applicants who have been denied.
  • Only reapply if you need to update or correct information.
  • The government of Canada has developed standards for determining eligibility. Neither the BDC nor the financial institution has the power to approve exemptions from the eligibility requirements.

Why am I required to fill out an online application form for BDC as part of the application process?

You will supply high-level information about your organization by completing the HASCAP Guarantee Online ID Form.

This data will assist the Canadian government in determining which firms are requesting relief through this program.

Please keep in mind that completing this form does not imply that you have given your approval. This is only the first step in the application procedure.

Since March 2020, I’ve gotten other COVID-related incentives from the federal government. Is it still possible for me to apply for this program?

Yes, it is correct. To confirm your eligibility and begin the loan application procedure, contact your principal financial institution.

How much money can I borrow through a HASCAP loan?

HASCAP Loans range from CAD$25,000 to $1,000,000, with the amount available depending on the business’s operational expenditures.

The money is being loaned by the institution itself, with the Canadian government providing a 100 percent guarantee. The loans are available on conditions that are both flexible and competitive.

Up to $6.26 million is available for people who have many locations under one business.

 

Can I use a HASCAP Loan to pay off debt?

No, you can’t use a HASCAP loan to pay off or refinance existing debt. The HASCAP Loans should be utilized to keep or restart businesses.

 

ALSO, READ MORE POSTS ON:

Vincent
Vincent
Techboardz is an entrepreneur and has a passion for article writing, he is an article writer and editor, he has full zeal to write
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

Recent Comments