Financial Support · Government Updates · Top Resources Today May 14th, 2020

Understanding the Regional Relief and Recovery Fund (RRRF)

Updated May 15, 2020

Launched May 14, 2020, the Regional Relief and Recovery Fund (RRRF) is a $962b fund that has been created to:

  • supporting continuity by mitigate financial pressure experienced by businesses to allow to continue operating (and to pay their employees); and
  • support projects to prepare now for a successful recovery.

This initiative includes two components:

  • $675 million to support regional economies, businesses, organizations and communities in regions all across Canada;
  • $287 million to support the national network of Community Futures Development Corporations, which will specifically target small businesses and rural communities across the country.

The RRRF has three streams of eligibility:

  • Funding up to $40,000 via Western Economic Diversification;
  • Funding up to $40,000 via Community Futures; and
  • Funding over $40,000 via Western Economic Diversification.

Eligibility for funding up to $40,000

Non-Community Futures Stream

For requests up to $40,000, an organization must:

  • Have less than 500 full-time employees (FTEs);
  • Be incorporated in Canada, located in Alberta, British Columbia, Saskatchewan, or Manitoba, and intend to continue operations in those provinces, but not be located in an area serviced by a Community Futures office;
  • Be operational as of March 1, 2020; and
  • Have not received the Canada Emergency Business Account (CEBA) loan.

Sole proprietors are not eligible for this stream of the RRRF. This stream will be administered directly via Western Economic Diversification.

Community Futures Stream

For organizations operating in a rural area serviced by Community Futures, organizations are encouraged to apply directly to via the Community Future stream. To be eligible, an organization must:

  • Have less than 500 full-time employees (FTEs);
  • Be a sole proprietorship, partnership (except professional services), corporation, social enterprise, or other similar organization
  • Be incorporated in Canada, located in Alberta, British Columbia, Saskatchewan, or Manitoba, and intend to continue operations in those provinces, and located in a rural area serviced by a Community Futures office;
  • Be operational, viable, and not experiencing any financial difficulties as of March 1, 2020;
  • Have experienced a material adverse effect on business operations on or after March 1, 2020 as a result of COVID-19; and
  • Have not received the Canada Emergency Business Account (CEBA) loan or the Business Credit Availability Program (BCAP)
  • Be located in a rural area in Alberta, British Columbia, Saskatchewan, or Manitoba serviced by a Community Futures organization.

This stream will be administered directly via the Community Future offices.

How much can I apply for?

Under these streams of the RRRF, the maximum request will be $40,000, and will be scaled to the lesser of the applicant’s estimated total operating balance between April 1, 2020, and September 30, 2020 or $40,000.

Eligibility for funding over $40,000

For requests over $40,000, an organization must:

  • Have less than 500 full-time employees (FTEs);
  • Be incorporated in Canada, located in Alberta, British Columbia, Saskatchewan, or Manitoba, and intend to continue operations in those provinces;
  • Be operational as of March 1, 2020;
  • Can demonstrate 2019 revenue of less than $10m (or pre-revenue businesses that have received financing);
  • Can demonstrate and describe the financial impact of COVID-19 on its operations;
  • Can outline how funding will support the Western Canadian economy to:
    • retain diverse and valuable talent
    • maintain sector knowledge and skills
    • maintain capital flow
    • maintain critical supply chains and increase capacity to withstand supply chain disruptions
    • protect technologies and processes that improve resilience, productivity, and/or competitiveness
    • protect vital intellectual property

Sole proprietorships and not-for-profits are not eligible for this stream of the RRRF.

How much can I apply for?

Under this stream of the RRRF, your funding request may be scaled to your operating deficit, but not be more than $1 million.

Is this a grant, subisdy, or a loan?

For requests up to $40,000

For RRRF requests up to $40,0000, similar to the CEBA loan program, the following repayment terms will apply:

  • Repayment of 75%, or up to $30,000, of the contribution amount, on or before December 31, 2022, will result in the forgiveness of 25%, or up to $10,000 of the total contribution;
  • 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 three (3) year term repayable contribution (with a fixed monthly repayment schedule), beginning January 2023, with no forgivable portion; and
  • The full balance, of the contribution amount must be repaid no later than December 31, 2025.

For requests over $40,000

For RRRF requests over $40,000, 100% of the contribution must be repaid, but repayments will not be required until after December 31, 2022, and all repayments must be completed by December 31, 2025 (three-year repayment period).

How many times can I apply?

An organization can only submit one application for the RRRF.

How do I apply?

To apply, an organization must:

  • Complete the application for relief funding;
  • Provide financial statements for the past two (2) years; and
  • Provide estimated cash flow needs for the period between April 1 and September 30, 2020.

Where can I find more details?

Contributor

Sam Jenkins Read More
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