The Regional Relief and Recovery Fund (RRRF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic. The Fund, valued at more than $962 million nationally, is delivered by Canada’s six regional development agencies.
In southern Ontario, $252.4 million is available as follows:
In order to provide targeted assistance to the small towns and communities they serve, CFDCs will focus on assisting “main street” businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $40,000.
Note: In order for us to review your application, all required documents must be submitted.
In particular, the RRRF seeks to provide support to southern Ontario SMEs that:
The RRRF, delivered by Trenval Business Development Corporation (Trenval) (Trenval CFDC), will provide financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic
One application for funding per applicant is permitted. Multiple and concurrent applications for the same applicant will not be considered.
Electronic signatures will be accepted on all application documents and loan security documents.
All applications will be screened initially for completeness. Incomplete applications will not be assessed and will be considered ineligible for funding.
Applicants with incomplete applications are permitted to re-apply with completed applications including all required documentation.
Complete applications are those that include all prescribed documentation containing all information needed for Trenval to complete the review. Information should be accurate, verifiable, relevant and consistent. Complete applications will undergo a due diligence process where they are assessed against a number of factors.
Assessment criteria include, but are not limited to:
No payments required until December 31, 2022, but applicant can opt to make payments anytime between January 1, 2021 and December 31, 2022.
Up to 25 percent forgiveness is available, provided 75 percent, or up to $30,000 is paid back by December 31, 2022.
If 75 percent of the contribution amount is not repaid by December 31, 2022, the balance owing will be converted to an additional three-year interest bearing loan at 5% (fixed repayment schedule), beginning January 2023, with no forgivable portion.
The full balance of the contribution amount must be repaid by no later than December 31, 2025.
If an Application for Funding is approved, an Offer to Finance, Promissory Note, General Security Agreement and Personal Guarantee(s) if incorporated will be executed between the Applicant and Trenval Business Development Corporation.
Approved contributions will be disbursed through a single advance payment following receipt of the executed documents.
All approved applications will require the following loan documentation to be signed:
All approved SMEs will be required to submit a quarterly online survey beginning in January 2021, until full repayment of the loan. This survey will assist Trenval in measuring the local impacts of COVID-19 over the duration of the loan and may include:
The SME must also submit a copy of their financial statements within one hundred and eighty (180) calendar days of their fiscal year.
Should you be interested in a loan greater than $40,000 and meet the following eligibility criteria, you may wish to apply to FedDev Ontario for direct funding.
FedDev Ontario is delivering $213 million in funding support to SMEs impacted by COVID-19 that do not qualify for, or have been declined for, current Government of Canada COVID-19 relief measures.
For the RRRF funding provided directly by FedDev Ontario, priority may be given to SMEs that fall within the manufacturing, technology, tourism and other sectors key to the region, that are major employers in small communities, or that support the government’s commitment to underrepresented groups.
For more information, please visit the FedDev Ontario website and consult the Applicant Toolkit.
Please note: Applicants will not receive RRRF assistance from both their local CFDC and FedDev Ontario. Review the program guidelines to see which stream is right for you and contact FedDev Ontario if you have any questions before applying.
Review Frequently Asked Questions here