The MP for Pontiac, William Amos, underlined the establishment of the Highly
Affected Sectors Credit Availability Program, or HASCAP intended for companies. This program, which was introduced as part of the Fall Economic Statement 2020, aims to provide financial support to businesses that have been hit hardest by the COVID-19 pandemic.
Under the HASCAP, the Business Development Bank of Canada (BDC) will work with participating Canadian financial institutions to provide these businesses with low interest government guaranteed loans of up to $ 1 million. Hard-hit businesses with multiple establishments under one banner, such as hotel and restaurant chains, may be eligible for a loan of up to $ 6.25 million. William Amos says the HASCAP will help businesses cover their ongoing operating costs during the COVID-19 pandemic and invest in their long-term prosperity.
Summaries of Federal Government Actions
The Government of Canada has highlighted key programs for business owners and their employees. Here is a preview:
○ The Canada Emergency Wage Subsidy (CUSS), which was extended until June 2021, helps businesses by covering up to 75% of their payroll.
○ The Emergency Account for Canadian Businesses (CUEC) offers an interest-free loan of up to $ 60,000. Repayment of the loan balance by December 31, 2022 will result in a write-off of 25% of the loan balance.
○ The Canada Emergency Rent Grant (SUCL), which has been extended until June 2021, provides payments directly to business owners to cover up to 65% of their rent. Companies will be entitled to an additional 25% containment allowance when a public health order is issued. This means that up to 90% of their rent could be covered.
○ The Regional Aid and Recovery Fund (FARR) has over $ 2 billion to support small businesses across Canada that have been unable to access existing aid measures. It is offered through regional development agencies across Canada.