Regional Relief and Recovery Fund (RRRF)

RRRF
Small- and medium-sized enterprises (SMEs) in Western Canada who cannot access existing financial relief measures can now apply for funding under the Regional Relief and Recovery Fund (RRRF) through Western Economic Diversification Canada.

The RRRF can provide 2 types of funding for SME’s:

• Funding requests up to $40,000 – SMEs can apply for an interest-free repayable contribution of up to $40,000
• Funding requests over $40,000 – Eligible businesses can apply for interest-free repayable funding of up to $1,000,000 under the RRRF.

Regional Relief and Recovery Fund (RRRF) – funding requests up to $40,000

Western Economic Diversification Canada (WD) will provide eligible SMEs with an interest-free repayable contribution of up to $40,000 to help them through the COVID-19 pandemic. This program is specifically for SMEs that do not qualify for the Canadian Emergency Business Account (CEBA) or the RRRF-Community Futures Stream (funding program for Western Canadian SMEs located in non-metropolitan areas in Western Canada).

To apply for this funding, businesses must meet the following conditions:

• Have fewer than 500 full-time employees
• Are located in Western Canada (BC, AB, SK or MB)
• Are not located in areas serviced by a Community Futures (CF) office
• Are not eligible for the RRRF- Community Futures Stream
• Have applied and were declined for funding from the Canada Emergency Business Account (CEBA) or were not eligible for the CEBA funding
• Were operational as of March 1, 2020
• Have suffered financially due to the COVID-19 pandemic
• Intend to continue operations in Western Canada

Repayment terms are as follows:

• Repayment of 75% or up to $30,000 of the contribution amount on or before December 31, 2022 will result in forgiveness of 25% or up to $10,000 of the total contributions.
• No scheduled monthly repayments are required until after December 31, 2022.
• If 75% of the contribution amount is not repaid by December 31, 2022, the balance owing will be converted to an additional 3 year term repayable contribution with a fixed monthly repayment schedule beginning January 2023, with no forgivable portion.
• The full balance of the contribution amount must be repaid no later than December 31, 2025.

Regional Relief and Recovery Fund (RRRF) – funding requests over $40,000

Western Economic Diversification Canada (WD) will provide eligible SMEs with an interest-free repayable funding of up to $1,000,000 under the RRRF.

To apply for this funding, businesses must meet the following conditions:

• 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 (BC, AB, SK or MB)
• Have suffered financial due to COVID-19 pandemic
• Can demonstrate 2019 revenue or be pre-revenue businesses that received angel or venture capital funding
• Have applied for funding from other federal COVID-19 support measures
• Intend to continue operations in Western Canada
• Can describe the financial impact that COVID-19 has had on its operations and outline how this funding can help them

If the business has received support from other funding measures such as the Business Development Bank of Canada’s Co-Lending Program, Working Capital Loan and Oil and Gas Sector Capital Loan as well as Export Development Canada’s Business Credit Availability Program, but require additional funding for liquidity purposes may still apply.

Repayment terms are as follows:

• 100% of contribution must be repaid.
• No scheduled monthly repayments are required until after December 31, 2022.
• Three year repayment period, beginning January 2023.
• The full balance of the contribution amount must be repaid no later than December 31, 2025.

Note: Sole proprietors and not-for-profits are not eligible for the RRRF.

To apply for the RRRF, please refer to WD’s application guide here: https://www.wd-deo.gc.ca/eng/20062.asp

Source: https://www.wd-deo.gc.ca/eng/20059.asp
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