Skip to main content

Highly Affected Sectors Credit Availability Program (HASCAP)

  • Home
  • Highly Affected Sectors Credit Availability Program (HASCAP)
What Is HASCAP?

The Highly Affected Sectors Credit Availability Program provides a loan between $25,000 and $1 million per legal entity with no forgivable portion to help businesses from all sectors with additional financing. The proceeds of the loan are exclusively meant to fund the operational cash flow needs of the business and ensure a degree of operations continuity.

Eligible businesses must demonstrate a minimum 50% revenue loss for at least 3 months within the 8-month period prior to your HASCAP loan application. The three months do not need to be consecutive. The HASCAP will be administered by the Business Development Bank of Canada (BDC) and delivered through your financial institution. Applications will be accepted in some financial institutions starting February 1st, 2021. More details coming soon.

Most recent update: The HASCAP was announced by government on January 26th, 2021. Some participating financial institutions will begin accepting applications as of February 1st, 2021.

Program Overview           FAQ          
                    
  Other   resources  

HASCAP Overview

How much your business can receive:

A loan between $25,000 and $1 million per legal entity to a maximum of $6.25 million for combined related legal entities

  • 100% guaranteed by BDC
  • Carrying a 4% interest rate
  • Repayment term of up to 10 years
  • No personal guarantee required

Program duration: February 1, 2021 to June 30th, 2021

How to apply: First try through your primary financial institution. If your financial institution does not offer the loan, then you can apply through another financial institution who does offer it.

Application Deadline: June 30th, 2021

Eligibility criteria: see the FAQ below for details.

Stay informed! Get all your HASCAP updates a as soon as they become available. If you’re not a CFIB member and would like to receive the HASCAP updates by email, please subscribe to our email list.

Frequently Asked Questions

Is my business eligible for HASCAP?

Your financial institution will determine whether you qualify for this program based on the eligibility criteria established by the Government of Canada. The HASCAP is available to sole proprietors, but new businesses started in 2020 will not be eligible. Below are the eligibility criteria that have been disclosed to date.

An applicant business must:

  1. be a commercial enterprise selling goods or services that is at least sufficient to cover its operating expenses and service its debt
  2. have been financially stable and viable prior to March 1st (pre-pandemic)
  3. not have an impaired loan as of March 1, 2020 (pre-pandemic)
  4. demonstrate a minimum 50% revenue loss for at least 3 months within the 8-month period prior to the HASCAP loan application. The three months used do not have to be consecutive.
  5. be a Canadian based business
  6. plan to use the loan to continue or resume operations, and not to pay or refinance existing loans.

Additional financial institution adjudication will be added depending on your loan amount

Loan between $25,000 and $100,000

Loan between $100,001 and $250,000

Loan between $250,001 and $1,000,000

Borrower (and related entities if applicable)

  • meets the probability of default requirement prior to March 1, 2020

Borrower (and related entities if applicable)

  • meets the probability of default requirement prior to March 1, 2020
  • generate a minimum of $500,000 in gross revenues in the 12-month period ending as at the date of the most recent annual financial statements of the relevant obligors prior to March 1, 2020

Borrower (and related entities if applicable)

  • meets the minimum debt service coverage ratio requirement of 1.10x (including the HASCAP loan) as of the most recent financial statements of the relevant obligors prior to March 1, 2020 and as a minimum S&P CCC+ rating prior to March 1, 2020
How do I demonstrate my 3-month revenue drop?

To be eligible for the HASCAP you will need to demonstrate a minimum 50% revenue loss for at least 3 months within the 8-month period prior to your HASCAP loan application. The three months used do not have to be consecutive. The HASCAP revenue validation process will be expedited if you have already received your CEWS/CERS.

For this reason, the revenue drop proof requirements will depend on which of following categories your business falls into:

HASCAP revenue drop proof requirements for all applicants

  • demonstrate a minimum 50% revenue decline, for at least 3 months, within the last 8-month period prior to the date of your HASCAP application
  • complete a HASCAP Guarantee Online ID Form to provide high-level information about the company. Completing this form does not constitute an approval.

Additional proof requirements will depend on the applicant’s access to the CEWS/CERS; this will change the way their HASCAP application is validated. If the applicant:

Has received the CERS and/or CEWS

Have not applied for CERS and/or CEWS, but are eligible

Not eligible for CERS and/or CEWS

  • Provide your CERS/CEWS attestation forms to your financial institution, and
  • Provide proof of payment under the CERS/CEWS program via a bank statement or cancelled cheque
  • You will be required to apply for CERS/CEWS to get this loan,
  • Later provide your CERS/CEWS attestation forms to your financial institution, and
  • Provide proof of payment under the CERS/CEWS program via a bank statement or cancelled cheque
  • You will have to provide financial statements that reflect at least three months of monthly year-over-year revenue loss of a minimum of 50% per month within the 8 months preceding the loan application.
What sectors are considered highly affected?

This loan program is available to businesses in all sectors that meet the HASCAP Guarantee eligibility criteria.

Where can I find the status of my HASCAP application?

Your financial institution will be responsible for originating, authorizing, and managing eligible HASCAP loans. Should you have any questions or concerns about your HASCAP loan, your first point of contact should be with someone at your financial institution.

How can I apply for HASCAP?

An eligible business should first try to apply through their primary financial institution. If your financial institution does not offer the loan, then you can apply for it through another financial institution who does offer it. Even those who are already existing BDC clients must apply through their financial institution.

What can I use the HASCAP for?

You can use the funds for operating capital and to pay off regular debt payments, but it cannot be used to pay out an entire loan.

It cannot be used for dividends unless the dividends are being used as income to shareholders but will be limited to amounts earned prior to the pandemic.

Is the HASCAP taxable?

No, the loan you receive through HASCAP is considered a repayable loan and does not need to be included in your revenue.

What if I am not eligible for HASCAP?

If you are not eligible for HASCAP, the federal government has funded other loan alternatives:

For those with less than $40,000 in non-deferrable expenses in 2020 or $20,000 in payroll in 2019:

The Regional Relief and Recovery Fund (RRRF)

The Regional Relief and Recovery Fund is $1.486 billion distributed by Canada’s 6 Regional Development Agencies (RDAs) in the form of:

  • $1.05 billion in CEBA-like loans, called Regional Relief and Recovery Fund loans
  • $431.3 million in Community Futures Development Corporations programs, which target small businesses and rural communities across the country

Program details will vary in each Regional Development Agency and the application process is available now. Some RDAs’ programs can be used to supplement other government relief, while others are only available to those who were denied access to other COVID-19 relief.

What are the Regional Development Agencies (RDA)?

  1. Atlantic Canada Opportunity Agency (ACOA) - NS/NB/PE/NL
  2. Canada Economic Development for Quebec Regions (CED) - QC
  3. Canadian Northern Economic Development Agency - YT/NT/NU
  4. FedDev Ontario - Southern Ontario
  5. FedNor - Northern Ontario
  6. Western Economic Diversification Canada (WD) - AB/BC/MB/SK

Community Futures: If you are not eligible for the RRRF, contact your local Community futures program to determine if you are eligible for their RRRF plan.

Please visit our RRRF hub-page for more information.

 

For those with more than 1.5 million in non-deferrable expenses or payroll expenses:

Business Credit Availability Program (BCAP)

BCAP consists of multiple loan programs aimed at helping a range of businesses impacted by COVID-19. The program includes:

  • Canada Emergency Business Account (CEBA) - up to $60,000;
  • BDC Mid-Market Financing Program – between $12.5 million and $60 million;
  • BDC Co-lending program for small- and medium-sized businesses – between $1 million and $12.5 million;
  • EDC Loan Guarantee for small- and medium-sized businesses – amount determined by your financial institution; and
  • AccordExpress Program for small businesses - between $20,000 and $250,000.

Visit our CEBA and BCAP hub pages for more information.

Other HASCAP Resources

Don’t see the information you need? Talk to an expert – it's FREE

CFIB members get one-on-one advice from our business counsellors, exclusive access to helpful webinars, weekly email updates, and a voice in the support measures we push for from the government.

CFIB members: Get in touch today.

Not a CFIB member? We want to support you during this crisis. With a FREE temporary CFIB membership, you can access the same benefits and supports as a CFIB member.

GET YOUR FREE TEMPORARY MEMBERSHIP
Visit our COVID-19 Help Centre

Our primary concern at CFIB is making sure you have the support you need to get through this uncertain and challenging time. We provide you with expert advice and ensure that you have all of the latest information on government announcements and available support.

Visit our Help Centre