Regional Relief and Recovery Fund – Deadline March 31, 2021

COVID-19 Updates & Resources

The Regional Relief and Recover Fund (RRRF) is designed to support local businesses facing financial hardship because of COVID-19, but who are ineligible for the Canadian Emergency Business Account (CEBA) program, the “RRRF – Community Futures Stream,” (for rural businesses) or the “RRRF – Women’s Enterprise Initiative Stream” (click here for more info on this program) to access existing supports.

This fund will provide finding in either up to $60,000 interest-free loans, or interest free loans over $60,000 and up to $1 million.  There is a separate stream of funding for rural businesses as well through Community Futures offices.  Further details are below or read more on the RRRF page here, including how to apply.

The last day to submit an RRRF application is March 31, 2021.

RRRF Loans UP to $60,000  ($40,000 initial, and optional $20,000 top-up)

  • About:
    • Will provide eligible small- and medium-sized enterprises (SMEs) with an interest-free repayable contribution of up to $40,000 to help alleviate financial hardship resulting from COVID-19.  This initial loan can be topped-up with an additional up to $20,000 for a total contribution of $60,000
  • Eligibility:
    • Eligible businesses include corporations and businesses which have only contractors, which pay their owners with dividends or non-T4 income, or pre-revenue firms.   Sole proprietors and non profits are NOT eligible
    • Applicants must have fewer than 500 full-time employees, be located in Western Canada, not be serviced by a Community Future office (the Lower Mainland is not, so is eligible), were operational on March 1, 2020 and expect to continue operating in Western Canada
    • Business must be either not eligible for CEBA or have applied and been denied
  • Funding:
    • The amount of the funding will be a max of $60,000.  You apply first for the $40,000 and can then apply afterwards to access top-up funding up to $20,000 more.
    • For the initial $40,000 funding,  the amount of funding you will receive will be based on the shortfall between the businesses fixed operating costs and revenue between April 1 and September 30, 2020.  There must be a shortfall to receive funding.
    • For the supplemental $20,000 funding, the amount of funding you can receive will be based on your company’s shortfall between total fixed operating costs and revenue from October 1, 2020 to March 31, 2021.  There must be a shortfall to receive funding.
    • Fixed operating costs include items such as utilities, insurance, debt expense (e.g. interest payments, bank charges), professional fees, rent, wages and salaries, property and business taxes
    • For the up-to-$40,000 initial funding:  No repayments are required until after December 31, 2022, but repayment of 75%, or up to $30,000, of the contribution amount, on or before December 31, 2022, will result in the forgiveness of 25%, or up to $10,000 of the total contribution
    • For the up-to-$20,000 supplemental funding:  No repayments are required until after December 31, 2022, but repayment of 50% or up to $10,000, of the contribution amount, on or before December 31, 2022, will result in the forgiveness of 50% or up to $10,000 of the total contribution.
    • If after December 31, 2022, the loan has not been paid off/forgiven, the balance will be converted to a 3-year loan which must be paid back by December 31, 2025

Loans OVER $60,000 and up to $1,000,000

  • About:
    • Will provide eligible businesses with interest free repayable funding of up to $1,000,000.
    • Current applications outstrip the available funding, so applications will be judged and approved on merit.
  • Eligibility:
    • Eligible businesses must have less than 500 full-time employees, are incorporated to operate in Canada, were operational as of March 1, 2020, are located in Western Canada and expect to continue those operations
    • Must demonstrate 2019 revenue of less than $10 million, or pre-revenue businesses that received angel or venture capital funding
    • Must have applied for funding from other federal COVID-19 support measures, such as the Business Development Bank of Canada’s Co-Lending Program, and Export Development Canada’s Business Credit Availability Program
    • Can describe the financial impact that COVID-19 has had on its operations, and outline how WD funding will help support the western Canadian economy to:
      • retain diverse and valuable talent
      • maintain sector knowledge and skills
      • maintain capital flow
      • maintain critical supply chains and increase capacity to withstand supply chain disruptions
      • protect technologies and processes that improve resilience, productivity, and/or competitiveness
      • protect vital intellectual property
  • Funding:
    • The amount of the funding will be a max of $1,000,000
    • The amount of funding will be based on the shortfall between the businesses fixed operating costs and the forecast revenue between April 1 and September 30, 2020.  There must be a shortfall to receive funding.
    • Fixed operating costs include items such as utilities, insurance, debt expense (e.g. interest payments, bank charges), professional fees, rent, wages and salaries, property and business taxes
    • 100% of contribution must be repaid, but no scheduled monthly repayments are required until after December 31, 2022.  Then there is a 3 year repayment period, beginning January 2023 and the full balance must be repaid no later than December 31, 2025