The federal government has launched a Highly Affected Sectors Credit Availability Program to help businesses hardest hit by the pandemic through government-guaranteed, low-interest loans of up to $1 million from the Business Development Bank of Canada and participating Canadian financial institutions.

HASCAP is available to small and medium-sized businesses across the country, in all sectors, negatively impacted by the pandemic.

Businesses will benefit from a 4 percent interest rate, with a repayment term of up to 10 years. As well, there is up to a 12-month postponement of principal payments at the start of the loan.

Hard-hit businesses with multiple locations under one related entity could be eligible for up to $6.25 million. HASCAP will help businesses with their day-to-day operating costs during the COVID-19 crisis and enable them to invest in longer-term prosperity.

To be eligible for HASCAP, businesses need to show a year-over-year revenue decline of at least 50 percent in three months within the eight months prior to their application. They must also be able to show their financial institutions that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.

Eligible businesses can start applying as early as February 1, 2021, at principal financial institutions and more widely by February 15. Interested businesses should contact their primary lender to get more information and to apply.

More information is available at www.bdc.ca/hascap.