CIBC HASCAP Loans
CIBC has been named as one of the first six Canadian banks to provide low-interest, long-term loans under the 100% guaranteed government program affecting Highly Affected Sectors. This includes hospitality firms, restaurants, arts, culture, and other Canadian businesses impacted by COVID.
CIBC was quick to announce their support and participation with the program; however, they do not provide any more guidance to their customers other than to book an appointment with their CIBC personal business banker.
More details from CIBC
- Amortization up to 10 years
- No principal repayments for 12 months from the date of loan advance.
- The maximum finance amount, (including qualifying for terms), will be based on the HASCAP terms and conditions, business revenues and CIBC’s standard lending terms to be discussed with Client Relationship Manager
Loan Terms and Details
- 4% annual fixed interest rate; interest paid monthly.
- Amortization up to 10 years
- No principal repayments for 12 months from the date of loan advance.
- The maximum finance amount, (including qualifying for terms), will be based on the HASCAP terms and conditions, business revenues and Scotiabank’s standard lending terms for Commercial Business Banking clients.
Eligibility Requirements
- Have CIBC as your primary business bank.
- Be a Canadian business directly impacted by COVID-19.
- CIBC clients must have experienced 50% revenue decrease in any three (3) of the past eight (8) months evidenced through their application AND receipt of Government subsidies under either the Canada Emergency Rent Subsidy (CERS) or Canada Emergency Wage Subsidy (CEWS).
- Businesses that are eligible for CERS/CEWS must have applied for these relief programs before they can apply for HASCAP.
- The program is intended to exclusively fund the operational cash flow needs of the Business or any of its operating subsidiaries (i.e. payroll, rent, utilities, taxes, scheduled debt repayments and other fixed costs) including any costs incurred in retrofitting its operations to ensure its continued viability.
Ineligible Businesses
While eligibility details have not been provided via CIBC’s website, it is likely that the following businesses are not eligible to apply:
- Businesses not economically dependent on non-commercial sources such as direct gov’t funding or private donations. (First Nations owned businesses and Not-for-Profit organizations are eligible to apply).
- Government organizations or bodies, or entities which a government owns equity interest.
- Non-Profit, unions, charitable, religious or fraternal organizations or entities in which such organizations own equity interest, or entity is a fundraising vehicle for a charity except registered T2 or T3010 corporations that generate a portion of revenue from sales of goods or services.
- Non-Publicly traded entity owned by any current member of Parliament or Senate of Canada.
- Entities that promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, color, religion, sex, age or mental or physical disability or operate a sexually exploitive business.
