HASCAP (Highly Affected Sectors Credit Availability Program) to bring your business up to speed
There has been some talk among small businesses recently regarding the HASCAP (Highly Affected Sectors Credit Availability Program). But
- What is HASCAP?
- Does it apply to my business?
- Why should I use it?
- Are there any strings attached?
HASCAP is a “Guaranteed loan” what that means is a loan that has to be given if you meet the requirements, these loans range from $25,000 to $1,000,000 and have a 4% interest rate over 10 years, and during the first 12 months you can postpone/defer payments, plus most big Canadian banks like Scotiabank, Toronto Dominion, Royal Bank of Canada, Canadian Imperial Bank of Commerce are able to offer this loan.
This loan, however, isn’t available for everyone, as these requirements have to be met, you have to have a Canadian-based business, you have to have been eligible for the Canada Emergency Rent Subsidy (CERS) or the Canada Emergency Subsidy (CEWS).
Both CEWS and CERS programs require you to have made less than 50% of your average monthly revenue during a certain non-consecutive period of time during the pandemic, and you have to have had a stable business before the pandemic.
These are the main requirements of the loan but contact your financial institution to see if you fully qualify. If you qualify for this loan, it can have many benefits and could possibly get your business back on track.
HASCAP has a competitive interest rate of 4%, gives plenty of flexible options to pay off your loan, and can rebuild your credit. At the time of writing, the loan has put upwards of $745,000,000 back into the hands of small businesses, and around 3,200 businesses have already applied. And as more and more people learn about HASCAP it is becoming more and more popular as just in the last month alone, over 1900 people have applied for their legal entity’s.
This loan can also be used in many ways, as although it can’t be used to pay off pre-existing debts, it can be used to streamline your business, invest in a new innovative product, help improve cash flow, take care of payroll, bring in new inventory to sell, digitalize as that has proven to be extra beneficial during the pandemic, or maybe even invest in Smart Vendor POS Systems.
As for any strings, this loan is exactly what it says it is, and there aren’t any policies that are out of the norm. That being said, it’s still always important to go over the terms with your financial institution because you need to know what you signed up for.
The goal of the loan is to make businesses able to get back on their feet, and it can greatly help many businesses do just that. COVID-19 has affected many businesses; however, HASCAP can help reboot the economy and your business.