Regional Relief and Recovery Fund – Community Futures Stream

The Regional Relief and Recovery Fund

This $2-billion Government of Canada fund is to support small and medium size businesses that have been negatively impacted by the COVID-19 pandemic. These businesses can now apply for loans of up to $60,000 through RRRF.

As the financing terms of RRRF and Canada Emergency Business Account (CEBA) are similar, rural businesses can choose which program to apply for funding. Applicants can only apply to ONE of these federal programs.

• How the RRRF is being administered in Western Canada
• How to apply through the Community Futures Stream
• Eligibility requirements
• Eligible costs
• Repayment terms

How the RRRF is being administered in Western Canada

Western Economic Diversification Canada (WD) is collaborating with Community Futures Pan West to deliver the Fund in Western Canada.

Community Futures offices are supporting rural businesses requesting $60,000 or less. These businesses should apply through their local Community Futures office if they are eligible.

If you are a rural business requesting more than $60,000 you should apply through Western Economic Diversification Canada.

How to apply through the Community Futures Stream

Community Futures has 90 offices supporting rural businesses in British Columbia, Alberta, Saskatchewan and Manitoba. Applicants from rural communities are asked to apply through the website of their local CF organization, or their provincial Community Futures website.

• Find and contact your local CF office in British Columbia
• Find and contact your local CF office in Alberta
• Find and contact your local CF office in Saskatchewan
• Find and contact your local CF office in Manitoba

Eligibility requirements

• Small and Medium-Sized Enterprises (SMEs) located in non-metropolitan regions (all areas served by Community Futures organizations) in Western Canada.
• SMEs must attest they have not received duplicative supports through other federal or provincial government COVID-19 support programming such as the Canada Emergency Business Account.
• The small business must have been viable and not experiencing any liquidity or other financial difficulties as of March 1, 2020.
• The small business must have experienced a material adverse effect on business operations on or after March 1, 2020 as a result of the COVID-19 pandemic.
• Business established before March 1, 2020.
• Be a sole proprietorship, partnership, corporation, social enterprise, or other similar organization.

Eligible costs

• Lease payments for existing equipment and machinery;
• Salaries and benefits (will only be considered for support if the business has not received support under the Canada Emergency Wage Subsidy (CEWS);
• Property taxes;
• Utilities;
• Bank charges and interest payments;
• Office supplies;
• Vehicle operating expenses;
• Professional fees;
• Monthly insurance payments;
• Rent (applicants are expected to pursue with their landlord access to the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses); and
• Other fixed operating costs applicable to the applicant.

Repayment terms

• Maximum assistance will be $60,000;
• 0% interest and no principal payments until December 31, 2022;
• Principal repayments can be voluntarily made at any time;
• If you repay the outstanding balance on or before December 31, 2022, the following percentage of the contribution will be forgiven:
  • 25% on the first $40,000; and
  • 50% on amounts above $40,000 and up to $60,000;
• The forgivable portion is only available if the entire outstanding amount is repaid by December 31, 2022;
• If the Client is unable to repay the loan by December 31, 2022, the loan will be converted to a three-year term loan with interest rates up to 5%, effective January 1, 2023.  The full balance must be repaid no later than December 31, 2025.