There was some good news yesterday for businesses that have been the hardest hit by the pandemic as the federal government launched the Highly Affected Sectors Credit Availability Program. Up to $1 million in low-interest, government guaranteed loans are now available for businesses. Businesses with multiple locations can receive up to $6.2 million.
"We've been calling for help for the tourism and transportation sectors, which have been devastated," Chamber CEO Bruce Williams says. "This program is a lifeline, but we have concerns about adding more debt to businesses that have lost their revenue sources. Instead of loans, these businesses need relief to stay afloat until restrictions are lifted and they can start to make a living again."
To qualify, businesses need to show year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application. The Business Development Bank of Canada will work with participating Canadian financial institutions to provide the loans.