Applications open Monday, February 1 for the Highly Affected Sectors Credit Availability Program (HASCAP), available for businesses that have experienced sharp declines in revenue during the pandemic and have already applied for other business aid.
Loan amounts are between $25,000 and $1 million for a single business and can go up to $6.25 million for companies with multiple locations.
The interest rates for the loan will be set at four per cent and the terms will be up to 10 years, with an option of a 12-month postponement of principal payments at the start of the loan.
Applicants must demonstrate a year-over-year revenue drop of 50 per cent or more over three months, not necessarily consecutive, in the eight months before filing an application. Applicants must also show they’ve at at least applied for either the federal wage or rent subsidies.
The federally backed loan can be used for rent, utilities and help with payroll, among other costs, to keep operations running through public health restrictions, but can’t be used to pay or refinance existing loans.
More information is available here.