The Business Development Bank of Canada Highly Affected Sectors Credit Availability Program (HASCAP)
The BDC HASCAP program provides access to a non-revolving government guaranteed amortizing term loan from $25,000 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 are a qualifying Scotiabank Small Business Banking client, the BDC HASCAP provides you with access to a non-revolving government guaranteed amortizing term loan between $25,000 up to a maximum amount of $1,000,000.
- 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 Small Business Banking clients.
The following eligibility requirements must be met:
- Be an existing Scotiabank Small Business 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.
Please note 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.
- Borrower and/or Affiliates where it has been determined they have committed tax evasion or, except as disclosed, been subject to any assertion or assessment to have engaged in tax evasion.
Applying for the BDC HASCAP:
The BDC HASCAP is available starting February 1, 2021. If you are a current Scotiabank Small Business Banking client and interested in applying for the BDC HASCAP, please contact your Scotiabank Advisor.
The deadline to apply and obtain approval for the BDC HASCAP is December 31, 2021.