Press Release: Canada’s Hotel Industry Welcomes Launch of Highly Affected Sectors Credit Availability Program
January 26, 2021 (OTTAWA, ON) – The Hotel Association of Canada (HAC) is pleased to see the launch of the Highly Affected Sectors Credit Availability Program (HASCAP). Announced by the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, HASCAP will provide financial support to businesses that have been hardest hit by the pandemic.
The industry applauds other government support programs such as the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS), which have provided some much-needed relief for the sector. However, even with this support, liquidity remains a significant challenge, making this program necessary and much needed.
“Our industry was one of the first hit by this pandemic and it will be the last to recover,” said Susie Grynol, HAC President & CEO. “We have been calling on the government to implement a tailored loan program for the hardest hit since last Spring, and today it has come to fruition. We applaud their recognition of this need and we are optimistic that the roll out will be smooth and efficient.”
HASCAP will address a number of the gaps in the previously announced Business Credit Availability Program (BCAP) including a government guarantee, low-interest, liquidity of up to $1 million per property, a 10 year amortization period and no personal guarantees. Related entities will have access of up to $6.25 million.
“Results from our latest Hardest Hit Coalition survey demonstrate that without new financing, over 40% will not make it to the end of February,” added Grynol. “This announcement could not have come at a more critical time and we wish to thank Ministers Ng, Freeland, Joly and the Prime Minister for standing by our sector to help us get to the other side of recovery.”
Hoteliers will be able to apply for HASCAP through their primary lender as early as February 1st at principal financial institutions and more widely by February 15th. For more information, please visit www.bdc.ca/hascap.