Comments on Funding:
Funding takes the form of loans ranging from $25,000 to $1 million.
Entrepreneurs 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).
Loan terms and conditions:
- The guarantee covers amounts ranging from $25,000 to $1 million to ensure a degree of continuity for businesses through the pandemic.
- The Government of Canada has mandated BDC to provide a guarantee to the applicant’s financial institution for 100% of the value of a new term loan, to increase the company’s ability to access new credit.
- The interest rate is 4% and the repayment term is up to 10 years.
- Principal payments can be postponed up to 12 months at the start of the loan.
- the Canada Emergency Subsidy (CEWS) and/or
- the Canada Emergency Rent Subsidy (CERS) and/or
- Tourism and Hospitality Recovery Program (THRP) and/or
- Hardest-Hit Business Recovery Program (HHBRP) and/or
- Canada Recovery Hiring Program (CRHP).
The applicant’s primary financial institution will determine whether the applicant qualifies for this program, based on the eligibility criteria established by the Government of Canada. Neither BDC nor the applicant’s financial institution has the authority to grant exceptions to eligibility criteria.
Other conditions may also apply.
They can apply at one financial institution only.
Other Things to Note:
The program was extended until March 31, 2022.