The Highly Affected Sectors Credit Program (HACCP) provides companies hard hit by the pandemic with a guaranteed loan ranging from $25,000 to $1,000,000 at a rate of 4%. Repayment terms can be up to 10 years following receipt of the loan.
The federal government has mandated the Business Development Bank of Canada to provide your financial institution with a guarantee covering the entire new loan. On December 14, 2021, it was announced that the deadline for making a request had been extended to
to March 31, 2022
.
to March 31, 2022
.
Eligibility criteria
To qualify, the Canadian company must have been financially stable prior to the pandemic, including not having defaulted on a loan as of March 1, 2020.
Several other criteria must be met, including
Be eligible for payments under one of the federal government’s business assistance measures: the Canada Emergency Wage Subsidy (CESS), the Canada Emergency Rental Assistance (CERA), the Tourism and Hospitality Stimulus Program (THSP), the Hard Hit Business Recovery Program (HBSRP) or the Canadian Economic Recovery Hiring Program (CERH). Certain exceptions may apply to this criterion.
Demonstrate a drop in income of at least 50% due to the pandemic for at least three months in the eight months preceding the application. The loan must be used to continue your company’s activities, not to repay existing debts.
Other conditions attesting to pre-pandemic financial stability also apply, depending on the amount of the loan granted.
We recommend that you contact your financial institution for complete program details, to verify your eligibility or to apply for a loan.
