WD Regional Relief and Recovery Fund (RRRF) – Application Guide

The Regional Relief and Recovery Fund (RRRF) will provide interest-free repayable contributions to help support businesses that have suffered a financial hardship resulting from the COVID-19 pandemic. The support will assist small- and medium-sized enterprises that are unable to access other federal COVID-19 relief measures. Western Economic Diversification Canada (WD) is delivering RRRF in British Columbia, Alberta, Saskatchewan, and Manitoba.

The RRRF will support businesses in two unique ways. It will:

1. Provide up to $60,000 (in a 2-step process), in repayable contributions, to businesses that are not eligible to access the Canada Emergency Business Account (CEBA), the “RRRF – Community Futures Stream,” or the “RRRF – Women’s Enterprise Initiative Stream.”
   • Repaying 75 percent of the first $40,000 contribution on or before December 31, 2022 will result in forgiveness of 25 percent of the contribution, up to $10,000. For funding above $40,000 and up to $60,000 (the RRRF expansion amount), repaying 50% of this additional funding or before December 31, 2022 will result in forgiveness of up to 50%, or up to $10,000 of the additional contribution.
   • Note that this application form is for businesses applying for the initial funding of up to $40,000 (Step 1). A separate application, by email invitation after obtaining or applying for the initial $40,000, will be utilized for the RRRF expansion (Step 2). Also note that the forgivable portion is only available if the entire outstanding balance, from both the initial application and the RRRF expansion, is repaid by December 31, 2022.
2. Provide more than $60,000, up to $1,000,000, in fully repayable contributions to businesses that can demonstrate a meaningful contribution to the western Canadian economy, and are experiencing liquidity issues. These companies must have previously applied for funding from other Government of Canada COVID-19 support measures, but require additional funding through the RRRF to mitigate cash flow pressures.
   • Applications will be assessed against the criteria outlined for projects requesting over $60,000 in funding and only those with the highest evaluations will receive funding. Our objective is to support projects with the strongest alignment to the criteria and assessment elements.

This guide provides instructions to applicants on how to complete WD’s Application for the RRRF. Refer to WD’s website for information on program objectives, eligibility criteria, funding, and the application review process.

Application tips

Complete all mandatory fields in each section or indicate if a field is not applicable. Use the best available information at the time of completion of the application.

Supplementary materials other than those identified in the application will not be assessed and should not be submitted.

The information contained in your application for funding is subject to the Access to Information Act and the Privacy Act.

Incomplete applications, with missing mandatory information or documentation, will not be assessed and will be considered ineligible for funding.

A business can only submit one application to the RRRF.

Applicants are encouraged to contact WD at 1-888-338-WEST (9378) if they have any questions regarding the application for RRRF funding.

What are the application steps?

Step 1: Refer to the eligibility section on WD’s website to ensure your project meets program criteria. We recommend you review this guide before starting your application, as the form must be completed in one session. Prepare all requested documentation.

Step 2: Start your Regional Relief and Recovery Fund application.

Step 3: Using this guide, complete the application form. The sections below correspond with the sections in the application.

Step 4: Attach all requested documentation to your application.

Step 5: The application form will display an error message if you are missing any required information and attempt to submit. Please print a copy of your completed application before you submit.

Step 6: Once your application is submitted, a confirmation message with your Reference Number will be displayed on your screen. Please print this page for your records.

Step 7: The primary contact identified on the application can expect to receive an acknowledgement email within 12 hours. Check spam or junk folders for the acknowledgement email following the 12-hour period.

How to complete the application for funding

Organization information

• Legal name of applicant organization: The name of the business or organization.
• Operating name: The name under which the business is publicly conducted e.g., 123456 Western Ltd., operating as XYZ Technologies.
• Operating facilities: Select each province where your operating facilities are located.
• Federal lands: Indicate whether any of the proposed activities will occur on federal lands, as defined in the Impact Assessment Act. Activities on federal lands could be subject to additional requirements.
• What date did your business commence operations in Canada? Provide the date you started business operations in Canada. This may differ from your date of incorporation.
• Organization type: Select from the drop down menu, what most accurately reflects your organization type. This program only supports for-profit companies. Not for-profit organizations are not eligible to apply.
• Business structure: Select the business structure most applicable. Sole proprietorships are not eligible to apply.
• Number of employees: Indicate the number of Full-Time Equivalent employees (FTEs) working for your business. Part-time employees should be calculated based on their equivalent FTE (i.e., one part time employee working approximately 20 hours per week should be represented as 0.5 FTE).
  • Note: RRRF is open to small and medium-sized enterprises (SMEs) with less than 500 full-time employees.
• Women-owned, Indigenous-owned, Tourism business: Select if applicable (optional). Information will be collected for Government of Canada reporting purposes. It is not an eligibility factor.

Organization unique identification number

• CRA Business Number: The business number is a unique 9-digit number assigned by the Canada Revenue Agency.
• Incorporation type: Select the category that most accurately reflects your incorporation type. If provincially incorporated, indicate the province.
• Incorporation number: As shown on your Certification of Incorporation.
• Date of incorporation (YYYY-MM-DD): The date stated on the company’s Articles of Incorporation.

Primary contact

• Primary contact information: Indicate the person authorized to represent the business or organization. This person will be the main point of contact regarding the funding request.

Funding request

• Funding request up to $60,000 (2-step process): Enter an amount of up to $40,000 in this field. This application form is only for the initial $40,000.  Businesses seeking an additional $20,000, for a total of $60,000 in RRRF funding, will be invited to apply for this additional expansion amount through a separate application process. (See How to Apply.)
  • Note: DO NOT enter an amount of more than $40,000 as it will trigger additional elements of the application form that are not applicable to businesses seeking a maximum funding request of $60,000.
• Funding requests over $60,000: Enter an amount of more than $60,000 and up to $1,000,000. The application form will then require you to indicate whether you have applied for other federal COVID-19 support measures prior to applying for RRRF funding under WD. Additional business and financial information will be required. You will also be asked to submit financial statements for the last two fiscal years. Internally prepared financial statements are accepted. Your application will be subject to a higher level of due diligence and follow up information may be required. You will receive notification of decision once assessment is complete.

Government of Canada COVID-19 support measures

• Funding requests up to $60,000 (2-step process): Businesses eligible for the following Government of Canada COVID-19 relief measures are not eligible for funding under the RRRF program: the Canada Emergency Business Account (CEBA), the “RRRF – Community Futures Stream,” and the “RRRF – Women’s Enterprise Initiative Stream.”

If your business is eligible to receive CEBA funding and you are seeking $60,000 or less, you must apply through the Canada Emergency Business Account program.

If your business does not qualify for the CEBA and your business is located in an area serviced by a Community Futures Organization you must apply to the “RRRF – Community Futures Stream.”

If you do not meet the criteria of the Canada Emergency Business Account, “RRRF – Community Futures Stream,” or the “RRRF – Women’s Enterprise Initiative Stream,” you may be eligible for funding under the Regional Relief and Recovery Fund.

• Funding requests over $60,000: Businesses eligible for other Government of Canada COVID-19 support measures may not be eligible for funding under the RRRF program. Businesses will be required to first apply to other Government of Canada COVID-19 support measures for which they are eligible. This may include measures such as the Business Development Bank of Canada’s Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee, Co-Lending Program, Working Capital Loan, or Oil and Gas Sector Capital Loan, or Export Development Canada’s Business Credit Availability Program. Refer to the Government of Canada’s COVID-19 Economic Response Plan for a full listing of support measures.
• If you have been approved for funding from these programs, input the total amount of funding received.

Please note, as per the requirements of the RRRF, as set out by the Government of Canada, your business can not be:

• a government organization or body, or an entity owned by a government organization or body;
• a union, charitable, religious or fraternal organization or entity owned by such an organization or if you are, you are a registered organization that has filed your T2 return or T3010 return and that generates a portion of your revenue from the sales of goods or services;
• an entity owned by any Federal Member of Parliament or Senator; and
• an entity that promotes violence, incites hatred or discriminates on the basis of sex, gender identity or expression, sexual orientation, colour, race, ethnic or national origin, religion, age or mental or physical disability, contrary to applicable laws.

Financial information

Funding requests up to $60,000 (2-step process)

• Reported salary expenses from January 1, 2019 to December 31, 2019: Information will be collected for Government of Canada reporting purposes. It is not an eligibility factor.
• Arrears on outstanding debt: Has your business been in arrears for more than 3 months on outstanding debt in the last year? If you select Yes, this will not make you ineligible for RRRF funding. However, additional follow up may be required.
• Estimated operating costs between April 1, 2020 - Sept 30, 2020: The purpose of this program is to support fixed operating expenses that are not supported through other programs. This includes costs such as: utilities, insurance, debt expense (e.g. interest payments, bank charges), professional fees, rent, wages and salaries, property and business taxes and other costs. Provide explanation of other costs.
• Estimated revenue between April 1, 2020 - Sept 30, 2020: Indicate your revenue for this six-month period.
• Operating balance: This will be a determination of your estimated operating deficit, which is an automated calculation of your estimated total operating costs minus total estimated revenue. The amount of funding requested in the application must not exceed the amount calculated as your operating balance. For example, $100,000 (estimated operation costs) minus $75,000 (estimated revenue) equals $25,000 (estimated operating deficit). In this example, the application for RRRF funding could not exceed $25,000. If approved, you would receive $25,000 (the amount of your deficit) not the full $40,000.

   

Funding requests over $60,000 and up to $1,000,000

• Pre-revenue companies: This question is referring to businesses that have not generated any revenue streams from the products, and/or services they provide. Indicate if your business has received angel or venture capital funding in 2019 or 2020.
• Revenue: Enter the amount of revenue generated by your business in 2019 as indicated on your attached financial statements.
• Estimated (%) revenue reduction: Enter the estimated percentage revenue reduction your business is expected to experience directly related to COVID-19 impacts (e.g. 30% reduction).
• Debt: Enter the total amount of debt owed by your business as indicated on your attached financial statements.
• Arrears on outstanding debt: Has your business been in arrears for more than 3 months on outstanding debt in the last year? If you select "Yes", this will not make you ineligible for RRRF funding. However, additional follow up may be required.
• Equity: Enter the amount of equity in your business as indicated on your attached financial statements.
• Estimated operating costs between October 1, 2020 and September 30, 2021: The purpose of this program is to support fixed operating expenses that are not supported through other programs between October 1, 2020 and September 30, 2021. This includes costs such as utilities, insurance, debt expense (e.g. interest payments, bank charges), professional fees, rent, wages and salaries, property and business taxes and other. Explain other costs. Note: fixed operating costs for pre-existing commitments for payments or disbursements (such as dividends) to shareholders/partners, including management bonuses, may not be considered eligible.
  • Note that as of February 5, 2021, RRRF allows for up to a consecutive 12 months in supportable costs (which is an increase from the six months April 1, 2020 to September 30, 2020 offered earlier under the program). If you have previously applied, but have yet to be contacted by WD, you may reapply under the new provision or contact a regional office to adjust your application. If you have been previously approved for funding, please contact a WD regional office if you are interested in additional support.
• Estimated revenue between October 1, 2020 and September 30, 2021: Indicate your forecasted revenue for the period between October 1, 2020 and September 30, 2021.
• Operating balance: This will be a determination of your estimated operating deficit, which is an automated calculation of your estimated Total Operating Costs minus estimated Total Revenue. The amount of funding requested in the Application must not exceed the amount calculated as your Operating Balance.
  • As an example for revenue-generating firms:, $2,500,000 (total estimated operation costs) minus $2,200,000 (total estimated revenue) equals $300,000 (estimated operating deficit) less $10,000 (other approved federal COVID-19 supports). In this example, the application for RRRF funding could not exceed $290,000.
• Financial statement attachments: It is a mandatory requirement to attach your financial statements for the last two fiscal years. Internally prepared financial statements are accepted.

Business information

Provide a description of your organization and its principal business line(s).

Expected impacts

Describe the impact that COVID-19 has had on your business and how WD funding will enable your business to assist 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; and/or,
• protect vital intellectual property.

Provide an estimate of the number (#) of jobs you expect to maintain as a result of this relief funding. The number of full-time equivalent employees employed by your business for the length of the funding period (up to 12 months) as well as one month afterwards. Successful applicants will be asked to report on this metric.

Bank account information

Your bank account information is requested by WD for the purpose of administering electronic payment/repayments.

• Attach a blank “VOID” cheque from the account you wish to use for electronic payments, OR
• Obtain a bank letter/confirmation directly from the bank (e.g. direct deposit notification form).

Authorized official of the applicant organization acknowledgements

Ensure you have read and agree with the acknowledgements and certify that all statements and information in this application are true, complete, and correct the best of your knowledge. The individual authorized to sign the application on the organization’s behalf has reviewed the application and agrees that the information provided is accurate.

• The application form must be submitted by a member of your organization with signing power/authority to enter into a legal agreement.
• Note that WD may conduct a credit check (e.g. Equifax) for funding requests.