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The highlight of the new support for hard-hit industries is the creation of the Highly Affected Sectors Credit Availability Program, or HASCAP, which targets sectors such as tourism and hospitality, hospitality, arts and entertainment. .
The government says it will work with financial institutions to provide “100% government guaranteed financing for heavily affected businesses, and provide low-interest loans of up to $ 1 million on extended terms, up to ten years.
The document promises more details about HASCAP soon, although a government official told reporters the cost of the overall program would not yet be clear. “We just don’t have a clue, given the uncertainties in the market and the pace of the recovery, what the demand will be for this product,” the official said.
The Canadian Chamber of Commerce has welcomed the program, saying the business community has called for resources to be directed to areas most at risk of permanent closures.
“While further action is needed to help the travel, tourism, foodservice, hospitality, culture and energy sectors, today’s targeted support to the hardest-hit industries will help many companies survive the second wave and be there to propel our economic recovery, ”said Perrin Beatty, CEO of the Canadian Chamber of Commerce.
The tourism industry, which represents 750,000 workers and 2% of Canada’s GDP, will also receive more than $ 500 million in support of local businesses through the government’s Regional Relief and Recovery Fund.