Guaranteed Loans - Covid 19 Financial Relief
Posted on June 01, 2021
Highly Affected Sectors Credit Availability Program
Deadline for this Loan is: June 30, 2021
Has Covid-19 impacted your business? Propel CPA would like to bring to your attention GUARANTEED LOANS: 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.
Businesses heavily impacted by COVID-19 can access guaranteed, low-interest loans of $25,000 to $1 million to cover operational cash flow needs. These loans are for small and medium-sized businesses that have seen their revenues decrease by 50% or more because of COVID-19.
The guarantee covers amounts ranging from $25,000 to $1 million.
4% interest rate and a repayment term of up to 10 years, with up to a 12-month postponement of principal payments at the start of the loan.
Your business is Canadian based and must have been financially stable and viable prior to the current economic situation.
You must have received payments either from the Canada Emergency Wage 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.
If your business does not qualify for CEWS and CERS, but otherwise meets all HASCAP eligibility criteria, you must provide financial statements that reflect three months (not necessarily consecutive) 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.
The loan will be used to continue or resume operations and the loan cannot be used to pay or refinance existing loan.
You can apply for a loan under the HASCAP Guarantee for each legal entity you own, up to a maximum combined amount of $6.25 million (all legal entities combined).
Other conditions may also apply.
To apply for this loan, you must contact your financial institution to find out more. You can only apply at one financial institution only.
You can contact your Propel Advisor today for more details.