The Regional Relief and Recovery Fund (RRRF)
The RRRF was implemented as a commitment to help local businesses facing hardship due to COVID-19. Specifically, for those who are unable to access larger federal relief funding programs or unable to obtain a loan from traditional financial institutions
The RRRF is split into four streams to help support businesses that have been impacted by COVID-19
The four loan stream:
rural businesses
women-owned or -led businesses
all other small- and medium-sized businesses
funding over $40,000
Small- and Medium-Sized Businesses
Interest-free repayable loan of up to $40,000
The amount of funding will be based on the shortfall between the business's fixed operating costs and the forecast revenue between April 1 and September 30, 2020
Definition of fixed operation costs:
Utilities, insurance, debt (i.e., interest payments, bank charges, etc.), professional fees, rent, wages and salaries, property and business taxes
No repayments required until after December 31, 2022
25% (up to $10,000) forgiveness ONLY if 75% of the loan is repaid on or before December 31, 2022
If unable to repay the loan by December 31, 2022, it will be converted to a three-year term loan with interest rates up to 5% and must be repaid no later than December 31, 2025
Eligibility:
Fewer than 500 full-time employees
Located in Western Canada (Not serviced by a Community Future office)
In operation prior to March 1, 2020, and expected to continue to operate
Business is ineligible for CEBA or has applied and been denied
For more information, visit the Government of Canada page on RRRF
Women-Owed or -Led Businesses
The Women's Enterprise Initiative Stream is a separate funding program through the RRRF.
Eligibility:
Applicant must be a woman (19 years old or older, living in BC, and is a citizen or permanent resident) who owns and controls at least 51% of a business that is located in BC
The business established prior to March 1, 2020, and must be impacted adversely by COVID-19
The business was viable and not experiencing any financial pressures prior to March 1, 2020
The business is ineligible or not receiving any other federal supports for the same expenses (i.e., rent subsidy, wage subsidy)
Eligible Costs
Fixed costs - property taxes, utilities, professional fees, office supplies, debt (i.e., interest payments, bank charges, etc.), equipment leases, rent, etc.
* Rent only an eligible cost for support if not using the Canada Emergency
Commerical Rent Assistance
Expenses associated with retooling, rethinking workflows, automation, robotics, developing new markets, etc.
Wages and salaries - if NOT for the owner herself and NOT using the Canada Emergency Wage Subsidy
Ineligible Costs
Projects in the pre-start-up phase for which seed or early-stage capital is required
Any business in which the owner does not have operational control over important aspects of the businesses (ex. some franchises)
Any business for which the majority of gross revenues do not come from direct sales of the business's products or services (i.e., multi-tiered marketing projects)
Any investment that can be considered speculative
Refinancing of an existing debt from another lender
For more information, visit the Women's Enterprise Centre on the Women's Enterprise Initiative Stream