Please note that most of our business centres are open by appointment only and all visitors are required to be fully vaccinated to visit any BDC offices. We have put in place specific measures to protect everyone and to reduce the spread of COVID-19. If you are a BDC client, please contact your BDC representative directly or log in to your Client Space account. If you are an entrepreneur seeking assistance, we invite you to write or call us at 1-877-232-2269, weekdays from 8 a.m. to 6 p.m. (ET).
Is this the right financing for my business?
These loans are for small and medium-sized businesses that have seen their revenues decrease by 50% or more as a result of COVID-19.
Up to $1 million
The guarantee covers amounts ranging from $25,000 to $1 million to ensure a degree of continuity for your business through the pandemic.
The Government of Canada has mandated BDC to provide a guarantee to your financial institution for 100% of the value of a new term loan, to increase your company’s ability to access new credit.
Flexible and competitive terms
Benefit from a 4% interest rate and a repayment term of up to 10 years.
Up to a 12-month postponement of principal payments at the start of the loan.
How to apply
Contact your primary financial institution to find out more. Important: You can apply at one financial institution only.
Consult the list of participating financial institutions
The HASCAP Guarantee is available until December 31, 2021 (extended).
Contact your primary financial institution to apply for this loan. Your primary financial institution is responsible for managing this program, only it can provide a status on your application. BDC cannot access the details of your request. The program is now available at the following participating financial institutions.
For more information on the HASCAP Guarantee, view this webinar.
Is my business eligible?
Your primary financial institution will determine whether you qualify for this program, based on the eligibility criteria established by the Government of Canada.
Neither BDC nor your financial institution has the authority to grant exceptions to eligibility criteria.
One-page HASCAP Guarantee reference sheet
Download this one-page HASCAP Guarantee reference sheet and have it on hand to help guide your conversation, as you explore ways that the guarantee can help your financial institution consider your request.
HOW DO I APPLY?
Contact your primary financial institution to apply
The program is now available at participating financial institutions.
The list will be updated regularly.
Looking for a different financing solution for your business?
Program statistics to date
Total cumulative number of loans through HASCAP.
*Non audited summary data as of September 30, 2021
Frequently asked questions
Here are some answers to questions you may have about the HASCAP Guarantee.
How can I apply for a HASCAP Guarantee?
To apply, contact your primary financial institution. Only it can provide a status on your application. BDC cannot access the details of your request. Here is the list of participating financial institutions .
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.
Which sectors do you consider highly affected?
This program is available to Canadian businesses from all sectors that meet the HASCAP Guarantee eligibility criteria.
I have received other COVID-related benefits from the federal government since March 2020. Can I still apply for this program?
Yes, you may. Contact your primary financial institution to confirm that you are eligible and to start the loan request process.
Which financial institutions are participating in the HASCAP Guarantee program?
The program is now available to business owners at participating financial institutions. They include:
- 1st Choice Savings and Credit Union Ltd.
- Access Credit Union Ltd.
- Affinity Credit Union
- Alterna Savings and Credit Union Ltd.
- ATB Financial
- Bank of Montreal (BMO)
- BlueShore Financial Credit Union
- Cambrian Credit Union Ltd.
- Canadian Western Bank (CWB)
- Canadian Imperial Bank of Commerce (CIBC)
- Carpathia Credit Union Ltd.
- Coast Capital Savings Federal Credit Union
- Compass Credit Union Ltd.
- Conexus Credit Union
- Connect First Credit Union Ltd.
- Copperfin Credit Union Ltd.
- Credit Union Atlantic Ltd.
- DUCA Financial Services Credit Union Ltd.
- Eagle River Credit Union Ltd.
- FirstOntario Credit Union Ltd.
- First West Credit Union
- Fusion Credit Union Ltd.
- HSBC Bank Canada
- Innovation Credit Union
- Kawartha Credit Union Ltd.
- Lakeland Credit Union Ltd.
- Leading Edge Credit Union Ltd.
- Libro Credit Union Ltd.
- Mainstreet Credit Union Ltd.
- Meridian Credit Union Ltd.
- National Bank of Canada
- New Community Credit Union
- Newfoundland and Labrador Credit Union Ltd.
- Noventis Credit Union Ltd.
- OMISTA Credit Union Ltd.
- Royal Bank of Canada (RBC)
- Servus Credit Union Ltd.
- Shinhan Bank Canada
- Steinbach Credit Union Ltd.
- Stride 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.
- Westoba Credit Union Ltd.
- Windsor Family Credit Union Ltd. (WFCU Credit Union)
- Your Neighbourhood Credit Union Ltd.
This list will be updated regularly. If your primary financial institution (FI) is not on this list, we invite you to contact one of the listed participating FI.
Is there anything I can do to prepare my HASCAP Guarantee loan request and make the process faster?
- 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.
- 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.
- 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.
How do I know whether I qualify for the HASCAP Guarantee?
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.
- 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.
- 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
- 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.
What do you mean by minimal risk ratings, varying by size of new loan?
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.
Which businesses are not eligible for the HASCAP Guarantee?
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.
Where can I find out the status of my HASCAP Guarantee application?
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.
Can I apply directly through BDC, if I am already a client?
You must apply through your primary financial institution.
What do I do if my business is declined?
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.
What is BDC’s role in guaranteeing these loans?
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.
Why do I need to complete an online form for BDC as part of the application process?
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