The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, has announced the launch of the Highly Affected Sectors Credit Program (HASSCP). This program, which was introduced as part of the Fall 2020 Economic Statement, will provide financial support to businesses that have been hardest hit by the COVID-19 pandemic.
Canadian companies have suffered greatly from the COVID-19 pandemic. Many have had to turn to online services, reduce their activities or even suspend them altogether. As a result, they have been hard hit.
Under the CSTDP, the Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to offer these businesses low-interest, government-backed loans of up to $1 million. Hard-hit businesses with multiple locations under a single banner, such as hotel or restaurant chains, may be eligible for a loan of up to $6.25 million. CAISP will help these businesses cover their ongoing operating costs during the COVID-19 pandemic, and invest in their long-term prosperity.
The CTHP will be available to businesses across the country and in all sectors that were hardest hit during the pandemic, including those in sectors such as tourism, hospitality and catering, and those that primarily offer in-person services.
To be eligible for the CAISP, companies must demonstrate that they have experienced an annual decrease in revenues of at least 50% for three months out of the eight months preceding the submission of their application. They must also demonstrate to their financial institution that they have previously applied for the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy.
Eligible companies will be able to apply as early as February1 to major financial institutions, and on a larger scale by February 15. Interested companies should contact their primary financial backer for more information and to submit an application.
More information is available at www.bdc.ca/pcstt.
If you have any questions about existing corporate programs, please contact our expert Gustave Legault-Brousseau, CPA, CMA Senior Financial Analyst at Amyot Gélinas at 819 326-3400, ext. 3472.
