Today, the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, released details of the Regional Relief and Recovery Fund (RRRF) to support small businesses impacted by COVID-19. The funding will be allocated as follows:
$304.2 million for Western Canada – Western Economic Diversification Canada (WD)
$252.4 million for Southern Ontario – Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
$211 million for Quebec – Canada Economic Development for Quebec Regions (CED)
$110 million for Atlantic Canada – Atlantic Canada Opportunities Agency (ACOA)
$49.5 million for Northern Ontario – Federal Economic Development Initiative for Northern Ontario (FedNor)
$34.3 million for Northern Canada – Canadian Northern Economic Development Agency (CanNor)
FedDev Ontario Funding
Of the $252.4 million allocated to FedDev Ontario, $213 million have been allocated to provide interest-free loans for businesses in Southern Ontario that do not qualify for or have been declined for other COVID-19 business supports.
Priority will be given to SMEs in the manufacturing, technology and tourism sectors that are major employers in small communities or that support the government’s commitment to underrepresented groups.
The additional $39.4 million will be allocated to provide rural businesses with access to capital and other business support.
Must be a Canadian or provincially incorporated business, co-operative or an Indigenous-owned business located in Southern Ontario with 1 to 499 full-time equivalent employees.
Be facing funding pressures with fixed operating costs as a result of COVID-19.
Have been a viable business before the COVID-19 pandemic and plan to continue to operate their business or resume operations.
Have already applied to other Government of Canada emergency credit relief measures for which they are ineligible, as outlined in the program guidelines.
Up to a $40,000 interest-free loan with up to 25% forgiveness available for businesses who repay loans by December 31, 2022, or;
Up to a $500,000 interest-free loan with no payments required until December 31, 2022, and a fixed payment schedule beginning in January 2023.
Impact of COVID-19 pandemic on business operations.
Availability of other financial supports (e.g., access to credit at a financial institution and other federal COVID-19 measures).
Viability of the applicant (i.e., ability to repay the contribution).