The HASCAP Loans program is designed to provide guaranteed, low interest, loans between $25,000 to $1 million to Canadian small businesses that were heavily impacted by COVID-19.
Last updated: Dec 15, 2021
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What is the HASCAP loan?
HASCAP loans are for small and medium-sized businesses that have seen their revenues decrease by 50% or more due to COVID-19 and the global pandemic.
Up to $1 million in funding
The guaranteed loans amounts range from $25,000 to $1 million to cover operational cash flow needs for your business.
The funds are guaranteed by the Canadian government through BDC, the Business Development Bank of Canada.
Low-interest and flexible terms
Businesses can benefit from a 4% interest rate and a repayment term of up to 10 years. In addition, up to a 12-month postponement of principal payments at the start of the loan.
Where to apply for a HASCAP Loan
You should consult with your primary financial institution for your business. You can apply at one financial institution only. We’ve put together a convenient list for you here.
Am I eligible for a HASCAP loan?
The eligibility criteria are established by the Government of Canada. Based on these requirements, your primary financial institution will determine whether you qualify for this program.
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 Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least 3 months* within the 8-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 3 months* of financial statements, that shows monthly year-over-year revenue decreased by at least 50% within the 8-month period prior to the date of the HASCAP Guarantee application.
* Does not necessarily need to be consecutive months.
The loan will be used to continue or resume operations.
The loan cannot be used to pay or refinance existing loans.
You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million (all legal entities combined).
Other conditions may also apply.
Why does HASCAP exist?
“We know that businesses in tourism, hospitality, travel, arts and culture have been particularly hard-hit,” Finance Minister Chrystia Freeland said in her speech to the House of Commons when the program was first announced in the Fall economic Statement.
It is important to clarify that this website is not the official government website. It was assembled as the creators were also struggling as operators of a highly-impacted travel-related company and we found limited information was available about HASCAP Loans and the HASCAP program.
Please share this site with those in travel, tourism, arts and culture… be they restaurants, hotels, attractions, museums, cultural institutions who may find this program a welcome relief. Let’s build back Canada better.
Frequently Asked Questions on HASCAP
What Businesses Are Deemed to be ‘Highly Affected’?
HASCAP Loans are targeted to those businesses that have been highly-affected by COVID-19. The government has identified several sectors—like tourism, hospitality, arts and culture.
However, all research done by this website cannot unearth businesses that would not be eligible as long as you can meet the eligibility requirements. Contact your financial institution for more details.
Can I pay off debt with a HASCAP Loan?
No, you cannot use your HASCAP loan to pay off existing debt or refinance existing obligations. HASCAP Loans should be used to continue or resume operations.
Can I still receive a HASCAP Loan if I did not qualify for CEWS or CERS?
Yes. While the process appears to be easier if you have already qualified or received CEWS (Canada Emergency Wage Subsidy) or CERS (Canada Emergency Rent Subsidy), you may still be eligible for a HASCAP Loan.
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.
What is the goal of the HASCAP Loan program?
The goal of the HASCAP Loan program is to support highly-affected Canadian businesses who may have been ineligible for other government programs or otherwise more affected than other businesses.
The goal of HASCAP is to provide new support so Canadian businesses can weather this [COVID-19] storm and be ready for a robust recovery that will create jobs and strengthen the middle class.
How much can I apply for under a HASCAP Loan?
HASCAP Loans are for CAD$25,000 to $1,000,000 and the amount eligible will depend on operational costs for the business.
The money is being loaned by the institution itself under a 100% guarantee from the Canadian government provides. The loans are being offered with flexible and competitive terms.
For those with multiple locations under one entity, up to $6.26 million is available.
Does a HASCAP Loan need to be repaid?
Yes, HASCAP loans need to be repaid. The program provides loan guarantees to financial institutions and not grants. The program has promised eligible companies could receive up to a 12-month postponement on principal repayments at the start of the loan.
Repayment terms for eligible companies could be up to 10 years, giving businesses substantial time to recover and rebuild the Canadian economy.
What if my business is not eligible for HASCAP or need additional funding?
You many want to explore other financing options for small business loans. On Deck can help with flexible funding options from $5k to $300k. You can find out if you’re eligible for a loan without affecting your credit score. Submit a no-risk application in just a few minutes.
We’ll continue to identify, update, link to, and summarize assorted programs and Canadian Small Business Loans and other funding opportunities.
Still have questions?
Click here for the full HASCAP FAQs.