Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee

Business owners highly impacted by COVID-19 must contact their primary financial institution, which will determine whether the program is appropriate for them.

The pre-financing eligibility validation is based on the criteria established by the Government of Canada. No organization involved in administering the HASCAP Guarantee, including your financial institution, has the authority to grant exceptions.

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

Yes, you may. Contact your primary financial institution to confirm that you are eligible and to start the loan request process.

The program is now available to business owners at participating financial institutions. They include:

• Affinity Credit Union
• ATB Financial
• Bank of Montreal (BMO)
• BlueShore Financial Credit Union
• Bow Valley Credit Union
• Cambrian Credit Union Ltd.
• Canadian Western Bank (CWB)
• Canadian Imperial Bank of Commerce (CIBC)
• Coastal Capital Savings Federal Credit Union
• Compass Credit Union Ltd.
• Conexus Credit Union
• Connect First Credit Union Ltd.
• Copperfin Credit Union Ltd.
• Desjardins
• DUCA Financial Services Credit Union Ltd.
• FirstOntario Credit Union Ltd.
• Fusion Credit Union Ltd.
• HSBC Bank Canada
• Innovation Credit Union
• Kawartha Credit Union Ltd.
• Lakeland Credit Union Ltd.
• Libro Credit Union Ltd.
• Mainstreet Credit Union Ltd.
• Meridian Credit Union Ltd.
• Motor City Community Credit Union Ltd.
• National Bank of Canada
• Noventis Credit Union Ltd.
• Royal Bank of Canada (RBC)
• Scotiabank
• Servus Credit Union Ltd.
• Steinbach Credit Union Ltd.
• Sunova Credit Union Ltd.
• Sunrise Credit Union
• Synergy Credit Union
• The Assiniboine Credit Union
• The Toronto-Dominion Bank (TD)
• UNI Financial Cooperation
• Vancouver City Savings Credit Union (Vancity)
• Vision Credit Union Ltd.
• Windsor Family Credit Union Ltd. (WFCU Credit Union)

This list will be updated regularly.

1. If your business has received the Canada Emergency Wage Subsidy (CEWS) or the Canadian Emergency Rent Subsidy (CERS), when you apply, make sure you have your Canada Revenue Agency attestation forms demonstrating a minimum 50% revenue decline, for at least 3 months, within the 8-month period prior to the date of your HASCAP Guarantee applications. Your financial institution will require this information to process your request.
2. If your business did not receive CEWS or CERS and is eligible for it, you must apply and have received payments either from the Canada Emergency Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS) by having demonstrated a minimum 50% revenue decline for at least three months (not necessarily consecutive) within the eight-month period prior to the date of the HASCAP Guarantee application. Your financial institution will require this information to process your request.
3. If your business does not qualify for CEWS and CERS you must provide financial statements that reflect at least three months (which do not need to be consecutive) of monthly year-over-year revenue decrease of a minimum of 50% per month, within the 8-month period prior to the date of the HASCAP Guarantee application. Your financial institution will require this information to process your request.

Your business must have been financially stable and viable prior to the current economic situation and have been in operation as at March 1, 2020. Other criteria apply that your primary lender will outline.

IT MUST ALSO fall into one of the following categories.

1. Your business has received* the Canada Emergency Wage Subsidy (CEWS) Program or the Canada Emergency Rent Subsidy (CERS) Program by having demonstrated a minimum 50% revenue decline, for at least 3 months, within the last 8-month period prior to the date of your HASCAP Guarantee application.
2. Your business has not received CERS or CEWS and it qualifies for one of these two programs. You must first:
   • Apply for and have received* the Canada Emergency Wage Subsidy (CEWS) Program or the Canada Emergency Rent Subsidy (CERS) Program demonstrating that your business has experienced a minimum 50% revenue decline, for at least 3 months, and within the last 8-month period prior to the date of your HASCAP Guarantee application
3. If the business does not qualify for CEWS and CERS, it must provide financial statements that reflect at least 3 months (which do not need to be consecutive) of monthly year-over-year revenue decrease of a minimum of 50% per month, within the 8-month period prior to the date of your HASCAP Guarantee application.

*Your business will be required to provide the CEWS or CERS attestation forms demonstrating required revenue decline [and proof of payment under the Program (via bank statements or cancelled cheques)] during the application process with your financial institution.

Other conditions may apply.

Depending on the amount of financing that your business requires, you will need to meet certain risk rating requirements. The information below will give you a quick snapshot:

• Segment 1–Eligible loans between $25,000 - $100,000: your business must meet a probability of default requirement.
• Segment 2–Eligible loans between $100,001 - $250,000: your business must:
  • a) meet a probability of default requirement; and,
  • b) have generated a minimum of $500,000 in gross revenues for the 12-month period ending as at the date of its most recent annual financial statements prior to March 1, 2020.
• Segment 3–Eligible loans between $250,001 - $1,000,000: your business must:
  • a) meet a minimum debt service coverage ratio requirement of 1.10x as at the date of its most recent financial statements prior to March 1, 2020 and including the HASCAP loan and any other debt added since the most recent annual financial statements prior to March 1, 2020; and,
  • b) have a minimum S&P CCC+ rating prior to March 1, 2020.

Your financial institution will be able to provide you with additional information. Other conditions may apply.

The following borrowers are considered ineligible:

• businesses whose revenue model is predicated on non-commercial sources such as direct government funding or private donations;
• government organizations or bodies (other than an indigenous entity or body) as well as entities in which a government organization or body (other than indigenous entities or bands) owns equity interests;
• non-profit organizations, registered charities, unions, or fraternal benefit societies or orders, or a Person in which any such organization owns equity interests [except if it is actively carrying on a business in Canada (including a related business in the case of a registered charity) that earns revenue primarily from the regular supply of property/goods or services and not from non-commercial sources such as direct government grant funding or private donations];
• religious organizations, or a Person* in which any such organization owns equity interests;
• fundraising vehicles for charities;
• a Person in which equity interests are held by any single current member of the Parliament of Canada or any single current member of the Senate of Canada other than a Person* whose equity interests are publicly traded;
• entities that operate any form of sexually exploitive business or promote violence, incite hatred or discriminate on the basis of race, national or ethnic origin, colour, religion, sex, age or mental or physical disability;
• businesses that have been determined to have committed tax evasion.
• Other terms and conditions apply.

* “Person” means any natural person, corporation, company, partnership, joint venture, limited liability company, unincorporated organization, trust or any other entity.

Check with your primary financial institution.

Your only contact should be with your primary financial institution as it is responsible for managing this program, only it can provide a status on your application. BDC does not have access to the details of your request.

You must apply through your primary financial institution.

All declined applicants will be notified directly by their financial institution. You may re-apply only if you need to provide additional information or make a correction. The eligibility validation is based on the criteria established by the Government of Canada. Neither BDC nor the financial institution has the authority to grant exceptions to eligibility criteria.

Other programs may be better suited to your business. We invite you to consult other Government of Canada-funded relief measures to help you through these difficult times. For more information, visit Canada’s COVID-19 Economic Response Plan.

BDC is Canada’s bank for entrepreneurs. Given this unique purpose, the Government of Canada has mandated BDC to offer the HASCAP Guarantee to qualifying businesses impacted by the current pandemic through financial institutions.

By completing the HASCAP Guarantee Online ID Form, you will provide high-level information about your company.

This information will help the Government of Canada understand which businesses are seeking relief through this program.

Please note that completing this form does not constitute an approval. This is simply one step in the application process.

Protecting your personal and business information is important to us. BDC has adopted strong principles in that respect. For more information, click here