As of February 5th, Royal Bank of Canada (RBC) has been accepting applications under the HASCAP guarantee and is proud to support the Government of Canada’s program that will ensure access of amounts ranging from $25k to $1 million for qualifying businesses day-to-day operating costs.
The program will be provided to eligible RBC clients that have been directly impacted by COVID and seek financing to cover operating costs.
As Greg Grice, EVP, Business Financial Services, RBC, said “We know the coming months will continue to be hard for a lot of businesses across Canada and we remain committed to helping support them through these difficult times,”… “HASCAP, combined with other relief and grant programs offered nationally and provincially, will go a long way towards helping some of Canada’s hardest hit businesses in their recovery.”
RBC provides additional information on this page, where they also include details on other government relief programs they are actively supporting.
To get an overview of the program and how to access it a HASCAP Loan RBC, see below.
Program Details from RBC
Unlike other banks and financial institutions providing HASCAP loans, RBC provides slightly different terminology for how they are providing loans.
The requirements and eligibility criteria remain the same as what the BDC has defined, but they are of course utilizing their own underwriting criteria.
Included below is a loan amount breakdown and its corresponding eligibility criteria as set out by RBC.
Loan Terms and Details
Up to $100,000
- Confirmation of receipt of at least 3 months of CERS/CEWS benefits OR If not eligible for CERS/CEWS, accountant prepared financial statements that show 50 per cent revenue decline for at least 3 months
$100,001 to $250,000
- Confirmation of receipt of at least 3 months of CERS/CEWS benefits OR If not eligible for CERS/CEWS, accountant prepared financial statements that show 50 per cent revenue decline for at least 3 months
- Confirmation that annual revenues are at least $500,000 as per accountant prepared financials statements completed prior to March 1 2020.
$250,001 to $1,000,000
- Confirmation of receipt of at least 3 months of CERS/CEWS benefits OR If not eligible for CERS/CEWS, accountant prepared financial statements that show 50 per cent revenue decline for at least 3 months
- DSC Ratio of 1.1:1 tested on all existing debt and new HASCAP debt.
Eligibility Requirements
- You are an existing RBC Small Business Banking Client or RBC Commercial Financial Services Client and RBC is your primary financial institution.
- You operate a Candian Business
- Your business has been directly impacted by Covid-19 and was financially viable prior to the impact of the pandemic.
- If your business is eligible to apply for CERS, and or CEWS, and has not done so already, this must be done prior to application for HASCAP.
- Your business must be able to clearly demonstrate a loss of 50% or more in revenue in any 3 months of the past 8 months. As standard, this can be evidenced through your application or receipt of the aforementioned government subsidies.
- You guarantee the funds will be used solely to fund operational cash flow needs. Examples of what this encompasses include payroll, rent, utilities, taxes and other fixed costs.
- You must not have received any HASCAP funding from another financial institution.
How to apply for HASCAP at RBC
If you are an RBC business client you should speak with your RBC account manager to learn more about the application process.
If you do not have a dedicated account manager you can call RBC’s advice center at 1-866-591-0757.
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.
