The Regional Relief and Recovery Fund (RRRF) has been extended and expanded in southern Ontario.
The expanded parameters include increases in contribution amounts and the timeframe for eligible costs, and are available to new applicants and existing recipients.
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.
When RRRF was launched in May 2020, $252.4 million in liquidity support was provided for southern Ontario businesses. On October 2, 2020, an additional $184 million was made available to FedDev Ontario to continue to help organizations in southern Ontario deal with the ongoing economic impacts of COVID-19.
In order to provide targeted assistance to the small towns and communities they serve, CFDCs, Ontario’s ‘Local Stream’ will continue to focus on assisting “main street” businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, such as not-for-profit (NFP) organizations, including social enterprises that provide support to SME’s, with interest free loans up to $40,000 that may contain a condition for partial forgiveness of up-to 25% of the loan contribution amount.
Note: In order for us to review your application, all required documents must be submitted.
The RRRF seeks to support southern Ontario SMEs to address gaps in or supplement other federal relief measures, as well as complement those provided by other levels of government.
In particular, the RRRF seeks to provide support to southern Ontario SMEs that:
The Phase II RRRF, delivered by Trenval Business Development Corporation (Trenval) (Trenval CFDC), will provide financial contributions (interest-free loans) to help support fixed operating costs of small-and-medium enterprises (SMEs) where business revenues have been affected by the COVID-19 pandemic. Not-for-profit (NFP) organizations, including social enterprises that provide support to SME’s, will also be eligible for this support.
SME funding support for fixed operating costs, where business revenues have been affected by the COVID-19 pandemic.
If there is significant demand for the funding available, priority may be given to SMEs within our catchment area that:
Applications for funding are accepted on an ongoing basis with no submission deadlines, until the Fund is fully committed.
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.
Trenval will review applications as submitted in the order received.
All applications will be subject to a screening process and should be completed in full including signatures of all business owner(s) and all supporting documentation.
Incomplete applications will not be assessed and will be considered ineligible for funding, however applicants with incomplete applications are permitted to re-apply but need to ensure resubmitted applications are completed in full including all required documentation, with the understanding that resubmissions will be assessed in the order received.
Complete applications are those that include all prescribed documentation containing all information required 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:
An interest-free loan that may contain a condition for partial forgiveness of the loan contribution amount.
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 may be available, provided 75 percent or the total loan contribution is repaid in full 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:
Electronic signatures will be accepted on all loan security documents as needed.
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.
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.
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