The Federal Government has released the details of the Highly Affected Sectors Credit Availability Program (HASCAP), which was previously announced in the Fall Economic Update.
The program will be providing further financial support for our industry. The support program will be available via your primary lender on February 1st. These will be 100% government-backed loans and they will provide $25,000 to $1 Million per legal entity, up to a maximum of $6.25 Million for related entities, to be used for operational cash flow. The HASCAP application process will remain open until June 30th, 2021.
To help ensure you are ready to apply and to make the HASCAP Guarantee loan request process faster with your primary financial institution, you can confirm:
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-months before 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 for CEWS and/or CERS. 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.
“TIAPEI is pleased by the announcement by the Federal Government, launching HASCAP. The Tourism and Hospitality industry in Canada has suffered devastating losses during the COVID -19 global pandemic and Prince Edward Island tourism operations are experiencing very difficult circumstances. The Highly Affected Sectors Credit Availability Program (HASCAP), which was previously announced in the Fall Economic Update is another avenue of financial support that will assist PEI tourism businesses as they adapt to changes and begin to recover,” states Corryn Clemence, CEO of the Tourism Industry Association of Prince Edward Island.