Support for Hotels 

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The Highly Affected Sectors Credit Availability Program provides loans to businesses hardest hit by the pandemic. HASCAP provides:

•  100% net loss government guarantee

• Loan amount between $25,000 and $1 million per legal entity

• Maximum combined exposure of related legal entities of $6.25 million

• Loan proceeds cannot be used to pay down an existing debt/lease facility

• Up to 10-year repayment term

• 4% fixed interest rate

• Up to 12-month postponement of principal repayments at the start of the loan

• No personal guarantees

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Eligibility:

An applicant business must:

• An applicant business must:

  • Be a commercial enterprise whose intent is to generate revenue from the sale of goods or services that is at least sufficient to cover its operating expenses and service its debt.

  • Have been financially stable and viable prior to the current economic environment.

  • Not have an impaired loan as of March 1, 2020, or the eligible loan closing date.

  • Other eligibility requirements may apply
     

Hoteliers must fall into one of the following categories:

• If your hotel has received the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Rent Subsidy (CERS)

  • ​You must provide Canada Revenue Agency attestation forms demonstrating a minimum 50% revenue decline, for at least 3 months, within the 8-month period prior to the date of your HASCAP application.

  • Your hotel must have received CEWS or CERS, or be receiving THRP, HHBRP, or CRHP.

• If your hotel does not qualify for these support programs:

  • ​You must provide financial statements that reflect at least three months (which do not need to be consecutive) of monthly year-over-year revenue decrease of a minimum of 50% per month, within the 8-month period prior to the date of your HASCAP application.

  • Your financial institution will require the above information to process your request.

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Timelines and How to Apply:

• As a first step, you must contact your primary financial institution to get more information and to apply.

  • You can only apply to one financial institution – your primary lender.

  • If your primary lender is not participating in the program, only then may you apply via another financial institution.

• The program will be available until March 31, 2022.

Canada Emergency Rent Subsidy  (CERS)

• The CERS program was a lifeline for many businesses in our industry. It provided a subsidy for employers to continue paying employee wages.

• As of October 24, 2021 the CERS program was replaced by two other programs:

  • The Tourism and Hospitality Recovery Program

  • The Hardest-Hit Business Recovery Program
    Please see the descriptions of these programs below.

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Eligibility:

• To be eligible for CERS, businesses must have a CRA payroll account on March 15, 2020 and have experienced a drop in revenue.

• Further details regarding eligibility can be accessed here.

• If you were eligible for the CERS, you can still apply for past claim periods until 180 days after the claim period has ended. Hoteliers can apply for CEWS directly on CRA’s website.

Details:

• CEBA provided interest-free loans of up to $60,000 to small businesses and not-for-profits.

• Repaying the balance of the loan on or before December 31, 2023 will result in loan forgiveness of 33 percent (up to $20,000).

CEBA is now closed. 

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Regional Recovery and Relief Program (RRRF)

• The RRRF was a flexible, interest free loan program with forgivable relief administered by the Regional Development Agencies (RDA) across Canada.

• Government has extended  the repayment deadline to qualify for partial forgiveness for CEBA-equivalent lending through the RRRF to December 31, 2023.

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RRRF is now closed.