Financial and Credit Support
Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee
The Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee is a COVID-19 relief program to help hardest-hit businesses from all sectors with additional financing.
Business Development Bank of Canada will provide a 100% net loss guarantee to increase these businesses’ ability to access additional liquidity. Proceeds of the loan (up to $1 million) are exclusively meant to fund the operational cash flow needs of the business and ensure a degree of continuity of operations. Currently this program is available until June 30, 2021.
VIEW PROGRAM DETAILS DOCUMENT
VIEW PROGRAM WEBSITE
Canada Emergency Business Account
The Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $60,000 to small businesses and not-for-profits, to help cover their operating costs during a period where their revenues have been temporarily reduced.
Several updates have been announced for the CEBA since its initial announcement, recently adding that the CEBA would be available to June 30, 2021.
Business Credit Availability Program (BCAP)
The Government of Canada has established a Business Credit Availability Program (BCAP) to provide $65 billion of additional support through the Business Development Bank of Canada (BDC) and Export Development Canada (EDC). BDC and EDC are working with private-sector lenders to coordinate on credit solutions for individual businesses, including in sectors such as oil and gas, air transportation, exportation and tourism. This program includes:
- Loan Guarantee for Small and Medium-Sized Enterprises:
EDC is working with financial institutions to issue new operating credit and cash flow term loans of up to $6.25 million to SMEs.
- Co-Lending Program for Small and Medium-Sized Enterprises:
BDC is working with financial institutions to co-lend term loans to SMEs for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program.
It was later announced that this support would be available until June 2021.
COVID-19: Supports for Canadian Businesses
The Business Development Bank of Canada has developed “COVID-19: Supports for Canadian Businesses”, a compilation guide of federal and provincial government support measures for businesses.
The Business Development Bank of Canada has created a toolkit of templates to help businesses minimize the risk that an emergency poses to operations and bottom line.
ACCESS THE TOOLKIT
Coronavirus (COVID-19): Small Business Impact Grant Part 3
The Small Business Impact Grant Part 3 supports businesses that have been directly affected by public health measures introduced in April 2021. The program provides businesses with a 1-time grant of up to $5,000 based on their sales revenue, plus an additional 1-time grant of $5,000. Applications close 25 June 2021.
ACCESS APPLICATION AND ELIGIBILITY
Small Business Loan Guarantee Program
The program is a joint initiative of the Nova Scotia Co-operative Council, Atlantic Central, local participating credit unions, and the Province of Nova Scotia. Together, we are delivering better financial assistance for the start-up and expansion of small businesses. The Small Business Loan Guarantee Program supports provincial business owners with creating and maintaining rewarding careers for Nova Scotians each year.
Credit unions are the only financial provider to offer access to the financing program, which ensures investments in our small businesses start and stay in Nova Scotia. Credit unions can provide financing up to $500,000 in the form of term loans, working capital and lines of credit. No other financing programs provide access to working capital or lines of credit to individuals who would like to start or purchase a small business and/or grow and expand an existing business.
Each application is evaluated on a case-by-case basis and is based on your business plan, viability and character. Your character? That’s right. And it doesn’t stop at the approval. The program is designed to empower Nova Scotia businesses to succeed with ongoing support, including access to a wide network of mentors for business coaching. That makes this program accessible and supportive for Nova Scotia small businesses.
Grant Thornton has developed and launched an online hub to help guide businesses through COVID-19’s impacts. The hub includes a number of videos, insights, and links.
VIEW THE HUB
Sydney Credit Union
The Sydney Credit Union has developed a summary document detailing various business relief programs, including deferrals, new capital, grants, labour & employment, wage subsidies, and other solutions.