The Regional Relief and Recovery Fund (RRRF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic. The Fund, valued at more than $962 million nationally, is delivered by Canada’s six regional development agencies.
In southern Ontario, $252.4 million is available as follows:
- $213 million for SMEs facing financial pressure; and
- $39.4 million to provide rural businesses with access to capital and technical support, delivered by southern Ontario’s Community Futures Development Corporations.
Applications will open on Tuesday, May 19
Funding available through your local CFDC
In order to provide targeted assistance to the small towns and communities they serve, CFDCs willfocus on assisting “main street” businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $40,000.
- Eligible CFDC applicants must also meet the following criteria:
- established prior to March 1, 2020;
- impacted adversely by the COVID-19 pandemic;
- viable and not experiencing other financial difficulties prior to March 1, 2020;
- have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses that have not been supported, with priority given to applicants who were ineligible or rejected from other federal relief supports.
- costs incurred prior to April 1st, 2020 are not eligible.
* Note that businesses may also be eligible to receive RRRF funds from FedDev Ontario but will not receive RRRF assistance from both a CFDC and FedDev Ontario.
Applications can be submitted for Loans of up to $40,000 to help address working capital needs.
Local Funding Terms:
- Loan amount allocation will be based on a 3-months timeline of eligible costs
- Maximum assistance will be $40,000
- 0% interest and no principal payments until December 31, 2022
- Principal repayments can be voluntarily made at any time
- 25 percent (not to exceed $10,000) of any loan can be forgiven provided the recipient has paid 75 percent of the original loan amount prior to December 31, 2022
- If the recipient is unable to repay the loan by December 31, 2022, the loan will be converted to a three-year term at 5%, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025.
To get a start on your application you will need:
- Complete downloadable documents including:
Supporting Documents Required:
- Personal Identification for each business owner, preferably a driver’s license and passport
- Articles of Incorporation and/or Business Registration
- Financial Statements- Account Prepared preferred, or Balance Sheet and Income Statement for last year, in-house year to date financial statements
- Business Bank Statements or Account Activity printouts for April & May 2020
Please submit COMPLETED applications only via e-mail (including all required supporting documents above as well as completed Loan Application, Attestation Form, and 3 Month Fixed Cost Spreadsheet) via one email to Executive Director, Lesley Thompson at firstname.lastname@example.org
Funding available through FedDev Ontario
FedDev Ontario is delivering $213 million in funding support to SMEs impacted by COVID-19 that do not qualify for, or have been declined for, current Government of Canada COVID-19 relief measures.
Should you be interested in a loan of $40,000 or more and meet the following eligibility criteria, you may wish to apply to FedDev Ontario for direct funding.
Eligible applicants must:
- Be a Canadian or provincially incorporated business, co-operative or an Indigenous-owned business located in southern Ontario with 1 to 499 full-time equivalent employees;
- Be facing funding pressures with fixed operating costs as a result of COVID-19;
- Have been a viable business before the COVID-19 pandemic and plan to continue to operate their business or resume operations.
- Have already applied to other Government of Canada emergency credit relief measures for which they are eligible, as outlined in the program guidelines.
For the RRRF funding provided directly by FedDev Ontario, priority may be given to SMEs that fall within the manufacturing, technology, tourism and other sectors key to the region, that are major employers in small communities, or that support the government’s commitment to underrepresented groups.
For more information, please visit the FedDev Ontario website and consult the Applicant Toolkit. Please note: Applicants will not receive RRRF assistance from both their local CFDC and FedDev Ontario. Review the program guidelines to see which stream is right for you and contact us if you have any questions before applying.