HASCAP Loan Scotiabank (Overview)

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Access a HASCAP loan at Scotiabank if they are your primary financial institution.

As Canada’s 3rd largest bank by market capitalization, Scotiabank was chosen by the BDC to provide funding to small businesses under the HASCAP Guarantee.

To access financing under this program you must have witnessed a significant revenue decrease as the result of the Covid-19 pandemic and be in a “highly affected” sector as defined by the Government of Canada.

Scotiabank notes “The program is intended to provide liquidity support to Canadian businesses facing economic hardship due to demonstrated revenue decline as a result of the economic environment due to COVID”.

To qualify you must be a Scotiabank Small Business Banking Client, and meet all eligibility criteria as set out by the program.

If you meet the criteria you will be able to access $25k to $1mm in the form of a non-revolving amortizing term loan that is guaranteed by the government.

Program Details from Scotiabank

Get an overview of how Scotiabank is providing the HASCAP loan below.

Loan Terms and Details

  • 4% annual interest; fixed rate; interest paid monthly.
  • Amortization up to a maximum of 10 years.
  • No principal repayments for 12 months from the date in which the funds are advanced (optional).
  • The maximum financing amount is $1mm, with that being said the amount provided to your business will be within Scotiabank’s standard lending terms for Small Business Clients. This will typically emphasize your business’s revenue, viability, and assets.

Eligibility Requirements

  • Be an existing Scotiabank Small Business Banking Client and have Scotiabank as your primary financial institution.
  • Operate a Canadian business that has been impacted by the Covid-19 pandemic.
  • Businesses that are eligible for CERS, and or CEWS must have applied for these financing programs prior to submitting for relief funding under the HASCAP Guarantee.
  • Clients businesses must have witnessed a revenue decrease of 50% or more in any 3 of the past 8 months as substantiated through their application and receipt of existing government subsidies.

Ineligiable Businesses

  • Government organizations or bodies, or entities in which the government owns an equity interest.
  • Non-profits, unions, charitable, and or religious organizations.
  • Businesses that are currently not economically independent on non-commercial sources (i.e. Direct government funding, etc.)
  • Businesses/entities that are in violation of the law, or otherwise do not meet the requirements of the program as currently set out.

Additional Notes

The HASCAP loan is available via Scotiabank starting from February 1st, 2021, the deadline to apply and obtain approval is June 30th, 2021.

To begin the process you should contact your Scotiabank Advisor immediately.

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.

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Ryan Watkins

Ryan Watkins

Ryan is the Founder & Editor-in-Chief of The Rise SMB. He began this site as a way to help small business owners better understand the financial services, loans, and software available to them.

He has a Bachelor of Arts in Political Science from the University of Toronto and has served in various management & executive roles within the financial services industry, including most recently as the Head of Growth for leading Canadian Business Lenders, Loop & Lending Loop.

Much of Ryan's work has focused on providing accessible capital and credit building services to Canadian small business owners and entrepreneurs. In his spare time, Ryan loves bouldering, backpacking and drinking inordinate amounts of coffee.

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