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UPDATE: Government Announced An Additional $600 Million For the Relief and Recovery Fund



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:

  1. rural businesses

  2. women-owned or -led businesses

  3. all other small- and medium-sized businesses

  4. 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