NEW GOVERNMENT RELIEF ANNOUNCED – (RRRF) Interest free loans for small businesses
Applications are now open for the new Regional Relief and Recovery Fund (RRRF). The RRRF provides financial contributions (interest-free loans) of up to $40,000 to help support fixed operating costs and working capital needs of SMEs, where business revenues have been affected by the COVID-19 pandemic. Community Futures Development Corporations across southern Ontario are here to help small businesses impacted by COVID-19 that have been unable to access other federal support.
Small businesses can apply online at www.centreforbusiness.ca. The Centre For Business and Economic Development (CBED) is a federally supported not-for-profit Community Futures Development Corporation with a volunteer Board of Directors and professional staff whose purpose is to support community economic development and small business growth through business loans. CBED has been supporting businesses in the community for over 32 years.
The RRRF fund is intended to support businesses who 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. Details of the program are as follows:
• Maximum assistance under RRRF offered through the Community Futures program is $40,000
• 0% interest rate and no principal payments until December 31, 2022.
• Principal repayments can be voluntarily made at any time.
• 25% (not to exceed $10,000) of any loan can be forgiven provided the recipient has paid 75% 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 loan with interest rates up to 5%, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025.
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 businesses be interested in a loan of $40,000 or more and meet the eligibility criteria, they may wish to apply to FedDev Ontario for direct funding:
FedDev Ontario has two funding streams available.
Please contact the Centre For Business if you have any questions or need any additional information.