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RRRF

Regional Relief and Recovery Fund

The Regional Relief and Recovery Fund (RRRF) provides interest free loans to help support fixed operating costs of businesses and social enterprises, where revenues have been affected by the COVID-19 pandemic.

Who is eligible?

Eligible Applicants are:

  • Businesses (with less than 500 employees and annual sales less than $20 million)
    and
  • Social Enterprises (producing goods and services for the market economy that manage their operations and redirect their surpluses in pursuit of social, environmental and community goals)

Who:

  • Are located in the Municipalities of Augusta, Edwardsburgh/Cardinal, North Grenville, and/or the Town of Prescott
  • Were established prior to March 1, 2020
  • Were viable and not experiencing financial pressures prior to March 1, 2020
  • Have been adversely impacted due to the COVID-19 pandemic
  • Have attempted to access other federal relief supports and were ineligible, rejected or require funding for expenses in excess of support already received
  • Have not and will not apply for or accept other Government of Canada equivalent support.

Priority will be placed on:

  • Applicants who have applied for and were ineligible for or declined for other federal relief supports
  • Sole Proprietors
  • Main street businesses (i.e. retailers, restaurants, corner stores)
  • Businesses of strategic importance to their community
  • Applicants who are led by or majority-led by Women, Indigenous Peoples, Members of Official Language Minority Communities, Youth, Persons with Disabilities, Newcomers to Canada, Visible Minorities, LGBTQ2+.

How much can I apply for?

Applications for business loans in amounts up to $40,000 will be considered.

What can I use the loan proceeds for?

Loan proceeds are to be used to support fixed operating costs where business revenues have been affected by the COVID-19 pandemic.

Eligible Costs include:

  • Rent, wages / salaries, and benefits*
  • Property taxes
  • Utilities
  • Cleaning supplies and additional safety measures
  • Bank interest/charges and interest on loans
  • Professional fees
  • Insurances
  • Other eligible expenses associated with retooling, rethinking workflows, automation, robotics, developing new markets.

*Loans to cover costs such as rent, wages / salaries and benefits will only be considered if the applicant is ineligible, declined and/or not already receiving assistance for these costs from other federal funding measures. Loans are not to duplicate other Government of Canada or Province of Ontario relief measures

Ineligible Costs include, but are not limited to:

  • Purchase of land or buildings
  • Loan and mortgage principal payments
  • Refinancing of existing loans
  • Franchise fees.

What are the terms of the loan?

This loan has:

  • $0 application fee
  • 0% interest until December 31, 2022
  • $0 payments until December 31, 2022
  • $0 pre-payment penalties and fees

And is:

  • open for pre-payment in part or in full, at any time

And must be:

  • paid in full by December 31, 2025.

Pay in full early to take advantage of partial loan forgiveness!*

When you pay 75% of the value of your original loan, by December 31, 2022, we will forgive the remaining 25% (not to exceed $10,000).

For example, if you borrow $40,000 and repay $30,000 by December 31, 2022, we will forgive the $10,000 balance remaining on your original loan. Borrow $40,000. Pay back $30,000. You keep $10,000.

*Note that Applicants can only receive the benefit of forgiveness from one source of COVID-19 related financial support from the federal government yet all Applicants benefit fully from all other terms of this loan.

Can’t repay by December 31, 2022?

We will convert your loan to a term loan effective January 1, 2023 with:

  • 3 year term
  • 0% interest rate
  • full balance to be repaid by December 31, 2025.

This loan must be paid in full by December 31, 2025.

How do I apply?

Note: Additional information may be requested. Applications deemed to be impacted by the Impact Assessment Act (including projects on “federal lands”) or the Federal Official Languages Act will be required to complete additional steps prior to approval.

Applications submitted without the required information and/or supporting documentation may not be processed.

How will my application be assessed?

Assessment criteria will include, but are not limited to:

  • Eligibility of applicant
  • Alignment of applicant with priorities
  • Eligibility of costs
  • Extent to which applicant has access to credit and other relief supports
  • Extent to which the COVID-19 pandemic has impacted the applicant
  • Extent of impact of the RRRF loan on the applicant, employment, and the community
  • Ability of the applicant to repay.

Approvals will be made until our RRRF funding has been fully committed.

How will I know if I am approved?

We will be processing applications as quickly as we can. Depending on the volume of applications received, we aim to ensure complete applications are assessed within 2 weeks.

Applicants will be notified as to whether their application has been approved, priority ranked, or declined.

Approved applicants will receive an Offer to Finance outlining terms, conditions, disbursement of funds and any reporting requirements.

Funds will be disbursed by EFT to approved applicants once we have received:

  • Signed Offer to Finance
  • Signed Promissory Note
  • Signed Personal Guarantee

Approvals will be made until our RRRF funding has been fully committed.

More RRRF funding opportunities

If you are seeking an RRRF loan over $40,000, consult the program guidelines and eligibility criteria for RRRF Funding through FedDev Ontario.

You cannot access RRRF assistance from both Grenville CFDC and FedDev Ontario.

NEED HELP?

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