What is the HASCAP loan Guarantee and how do I get it? - Retail Council of Canada

What is the HASCAP loan Guarantee and how do I get it?

The HASCAP Guarantee is a federal government support program to help the businesses hardest-hit by COVID-19.  This program was available to all eligible retailers, regardless of sector, up until March 31, 2022.

Retailers can apply through their primary financial institutions for a HASCAP loan of $25,000 – $1M to cover their operational expenses. The government (BDC) will provide a 100% net loss guarantee to make it easier for these retailers to secure a loan.

To qualify, a retailer must, among other criteria:

  • be a commercial enterprise whose intent is to generate revenue from the sale of goods or services that is at least sufficient to cover its operating expenses and service its debt
  • have been financially stable and viable prior to the current economic environment
  • not have an impaired loan (as determined in accordance with International Financial Reporting Standards) as at March 1, 2020, or the eligible loan closing date

Applicants must also have received payments from one of the federal Covid-19 financial relief programs. If your business did not qualify for any of the federal support programs, but otherwise meets all HASCAP eligibility criteria, you can provide financial statements that show three months in which monthly year-over-year revenue decreased by at least 50% within the eight-month period prior to the date of the HASCAP Guarantee application.