As one of Canada’s six largest banks, National Bank was selected by the Government of Canada and the Business Development Bank of Canada (BDC) to provide low-cost financing under the highly affected sectors credit availability guarantee program.
This program is intended to support businesses in the tourism, art, hospitality, and travel sectors that have witnessed a significant revenue decline over the past 8 months as a result of the Covid-19 pandemic.
To access the HASCAP Guarantee program via National Bank you will have to reach out to your account manager and request an appointment. You can do this via the form available on this page.
To learn more about the program details, eligibility requirements, and loan details review the lists and sections below to assist in preparing yourself and your business prior to submitting your HASCAP application form.
Program Details from National Bank
The following information outlines what is currently available from the National Bank regarding the HASCAP Guarantee. It has been sourced from publicly available resources as linked in this article and throughout this website.
Loan Terms and Details
- Flexible, repayment terms of up to 10 years.
- Postponement of principal repayments for 12 months at the start of the loan.
- Amounts ranging from $25k to $1mm pending your current business revenues and operating costs (in addition to a range of other factors to be determined by National Bank and your respective account manager).
- 100% of the value of the loan will be guaranteed to your financial institution by the BDC.
- This is a low-interest loan, meaning it still requires repayment**
Eligibility Requirements
- Your primary bank is National Bank
- You operate a Canadian business that has been negatively impacted (revenue-wise) by the Covid-19 pandemic.
- You have been accepted and accessed financing via the Canadian Emergency Wage Subsidy, and or, Canada Emergency Rent Subsidy.
- If you have not met the eligibility requirement above you must; Clearly demonstrate a 50% revenue decline in 3 months within an 8 month period. Note, there is no requirement for these months to be consecutive.
- As a business owner, you must agree to not use any funds received under the HASCAP loan guarantee to pay debts or refinance existing debt. Funds are to be used solely for operational cash flow requirements including but not limited to payroll, rent, and more.
- Generally, you will also be asked to apply for the Canadian Emergency Wage Subsidy. And or, the Canada Emergency Rent Subsidy prior to being able to access funding via HASCAP.
Not eligible for HASCAP and need additional financing?
If you are not eligible for cash flow financing via the programs provided to your business by The Government of Canada and BDC, then you may want to consider other sources of small business funding.
We suggest checking out Lending Loop, for affordable small business loans with flexible repayment terms and low-interest rates.
Conclusion
As a National Bank client who meets the eligibility requirements as set out by the BDC, you should not face many issues accessing the HASCAP guarantee.
Though it should be noted this article/overview is just to be used for informational purposes. It is also advised to speak with your accountant or financial advisor.
