Scotia Bank HASCAP Loans
Scotia 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.
Scotia was the first of the big Canadian banks to provide further details for their clients announce the availability of HASCAP loans for their customers.
Kudos Scotia on being responsive and ready to act to help!
Scotia advises their clients that to get more details about eligibility criteria, clients are asked to contact their Scotiabank Small Business Advisor or Business Banking Relationship Manager.
More details from Scotia
Scotia notes that the BDC HASCAP program provides “access to a non-revolving government guaranteed amortizing term loan up to a maximum amount of $1,000,000. The program is intended to provide liquidity support to Canadian businesses facing economic hardship due to demonstrated revenue decline as a result of the economic environment due to COVID.”
If you qualify AND you are a Scotiabank Commercial Business Banking client, you get access to a non-revolving government guaranteed amortizing term loan up to a maximum amount of CAD$1,000,000.
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
- Be an existing Scotiabank Commercial Banking client and Scotiabank is your primary bank or primary lender.
- Canadian business directly impacted by COVID-19.
- 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
- 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.
