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Important: Learn about the key points to Canada's Economic Stimulus plan

Client Communication:

Access to Credit for Small to Medium Businesses

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February 1, 2021

HASCAP (Highly Affected Sectors Credit Availability Program) 

HASCAP offers government-guaranteed, low-interest loans of up to $1 million. Chains and multiple-location businesses could be eligible for up to $6.25 million.

HASCAP is available to all small and medium sized businesses with revenues decrease of 50% due to pandemic.

Terms of loans:

• low interest with a repayment term of up to 10 years

• up to a 12 month postponement of principal payments

• available until June 30, 2021

To be eligible: 
• a year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application; 
• have previously applied for either CEWS or CERS; and
• have been financially stable and viable pre-COVID


Applications open: February 1,2021
Contact your primary financial institution to find out more.

Note: You can apply at one financial institution only.


 December 8, 2020

  •  Application deadline: March 31, 2021 (extended)
  •  Applications for the additional $20k now available via your bank (if you qualified for the $40K, you can now apply for the additional $20K)


BDC’s Small Business Loan (NEW May 7, 2020)

  • Up to $100,000
  • New clients and/or existing clients whose total debt with the bank is less than $100,000
  • The following eligibility requirements must be met:
    • Based in Canada
    • Generating revenue for at least 24 months
    • Good credit history

Apply here: https://www.bdc.ca/en/financing/business-loans/pages/small-business-loan.aspx


Canada Emergency Business Account (CEBA)

  • Up to $40,000
  • Interest-free to December 31, 2022
  • Repay by Dec 31, 2022 and receive 25% forgiveness
  • You will need 2019 payroll of $50,000 to $1,000,000 to qualify.
    UPDATE: You will need 2019 payroll of $20,000 to $1,500,000 to qualify.
  • For more information: Click Here | Application are available at your bank

December 29, 2020

Before applying for CEBA 2.0 (extra 20,000) note the following changes:

  • Attestation that the business is facing ongoing financial hardship as a result of the COVID-19. 
  • An amended agreement is required to be signed which certifies that all expenditures since the beginning of the program are “non-deferrable eligible expenses”, even if the first loan agreement you signed was different.
  • Both loans are now combined to be $60,000 and you only get forgiveness if you pay $40,000 on time (by Dec 31,2022). The forgiven amount will be $20,000 in total. If you already repaid the original $40,000 loan, claimed forgiveness, and then borrowed the additional $20,000, you get 50% forgiven once you’ve repaid 50% of the loan.

CEBA – checking status of your application

As of December 14, 2020, a new status-checking website is available:

https://status-statut.ceba-cuec.ca/


October 27, 2020

CEBA forgivable portion of loan of $10,000 should be included in income in the year in which the loan is received. Or elect not to include the forgivable amount in its income by reducing its outlay or expenses. Amounts that are not forgiven can be deducted for the year in which the repayment is made.

CEBA – personal accounts

On October 26, 2020 the government announced that CEBA will be available to businesses that have been operating out of a non-business banking account.

To be eligible, businesses must:

  • have been operating as a business as of March 1, 2020;
  • successfully open a business account at a bank; and
  • meet the other existing CEBA eligibility criteria.

The deadline to apply for CEBA is December 31, 2020.


October 13, 2020

Program expanded to provide an additional interest-free loan of up to $20,000.

Another $10,000 of this new loan would be forgivable, if repaid by December 31, 2022.

The application deadline: extended to December 31, 2020.

More details on this change, including the application process, are expected soon.


September 10, 2020

Deadline for CEBA applications is extended from August 31 to October 31, 2020.


June 26, 2020

Expanded program available June 26, 2020.


June 18, 2020

Expanded program which was to commence June 19, 2020 was put on hold. Updates to come.


May 20, 2020

Program will be expanded to:

  • sole proprietors receiving income directly from their businesses
  • businesses that rely on contractors
  • family-owned corporations that pay employees through dividends rather than payroll

To qualify, these applicants with payroll lower than $20,000 would need:

  • have a business bank account
  • have a CRA business number, and to have filed a 2018 or 2019 tax return.
  • have eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes, utilities, and insurance.

BDC Co-Lending Program for SMEs
  • Business with revenue less than $1M: Up to $312,500
  • Business with revenue between $1M - 50M: Up to $3,125,000
  • Business with revenue $50M+ -Up to $6,250,000
  • Medium-to long-term loans with amortizations up to 20 years.
  • The following eligibility requirements must be met:
    • Be an existing Commercial Banking client and it is your primary bank.
    • Canadian business impacted by COVID-19.
    • The program is intended to support bridging businesses’ operating expenses (i.e., payroll, rent, utilities, taxes and other fixed costs), until cash flows resume back to pre-COVID conditions.

Apply via your bank


BDC Working Capital Loans

  • Up to $2 million
  • Flexible repayment terms such as principal postponement for qualifying businesses

Source: https://www.bdc.ca/en/pages/special-support.aspx

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