On January 26, 2021, the Government of Canada announced the launch of the Highly Affected Sectors Credit Availability Program, also referred to HASCAP.
In light of the Province wide lockdown that came into effect on December 26, 2020, as well as the Stay-At-Home order that has been in place across Ontario since January 14, 2021, the launch of the HASCAP is welcome news to businesses across Ontario and Canada.
The HASCAP program will provide financial support to businesses that have been most affected by COVID-19. HASCAP will provide assistance with business’ day-to-day operating costs and enable them to once again plan for their futures.
HASCAP is available to all businesses across Canada, in all sectors, including restaurants, tourism businesses, businesses in the hospitality sectors (such as hotels), and those that rely on in-person service (such as car mechanics).
The Business Development Bank of Canada will partner with participating Canadian financial institutions to offer government-guaranteed loans from $25,000 up to $1 million, with a low interest rate of 4% with a repayment term of up to 10 years. Businesses can apply at one financial institution only. If there are multiple businesses operating under a common entity, each of those businesses could be eligible for an individual loan.
In order to be eligible to apply for HASCAP, businesses need to show a revenue decline of at least 50% in three months, within an eight month period prior to their application. Businesses must also show that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
Businesses can apply starting February 1, 2021 and will need to apply before June 30, 2021 by contacting their financial institutions.
Contact Minken Employment Lawyers today
Minken Employment Lawyers is your source for expert advice and advocacy on today’s employment law issues. If you have any questions with respect to HASCAP, please contact us or call us at 905-477-7011 to schedule a consultation. Sign up for our newsletter to receive up-to-date Employment Law information, including new legislation and Court decisions impacting your workplace.
Please note that this article is for informational purposes only and does not constitute legal advice.
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