The Regional Relief and Recovery Fund (RRRF) provides liquidity support to businesses and not-for-profit organizations affected by the economic impacts of COVID-19, that are unable to access other federal relief measures, or require additional support. The Fund, valued at more than $2 billion nationally, is delivered by Canada’s regional development agencies. In southern Ontario, $436.4 million is being delivered by FedDev Ontario and the Community Futures Development Corporations (CFDCs).
Trenval Business Development Corporation, your local Community Futures, is pleased to report since the inception of the program in May of 2020 to January 27, 2021, delivery of RRRF Programming supporting 42 SME’s totaling $1,415,000.00 in relief funding maintaining 85.5 jobs within the Trenval catchment area servicing Belleville, City of Quinte West, Deseronto, Stirling-Rawdon, Tyendinaga Township and the Mohawks Bay of Quinte.
In order to provide targeted assistance to the small towns and communities they serve, CFDCs are helping a range of businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $60,000. Not-for-profit (NFP) organizations that provide support services to SMEs as well as those engaging in commercial activities will be eligible for liquidity support.
The loans offered will be conditionally non-repayable, as outlined below:
Balances not paid back in full by the deadline are fully repayable and must be repaid no later than December 31, 2025.
Some not-for-profit (NFP) organizations are also eligible for RRRF support for community-based projects such as providing technical or support services to local businesses.
SMEs and eligible NFP organizations in need of technical assistance to adapt to the COVID-19 environment may be eligible to receive support from their local CFDC to access these services at no cost, through third-party service providers.
Examples of support services include:
Should you be interested in a loan of $60,000 or more and meet the eligibility criteria, you may wish to apply to FedDev Ontario for direct funding.
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 us if you have any questions before applying.
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.
Eligible Applicants
Ineligible Applicants
SME funding support for fixed operating costs, where business revenues have been affected by the COVID-19 pandemic.
NFPs organizations, including Social Enterprises that provide support services to SME’s (business or sector based organizations as well as those engaging in commercial activities) that do not qualify or have been rejected from any other existing Government of Canada COVID-19 relief measures.
Eligible Costs
May include:
Ineligible Costs
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.
To Apply:
One application for funding per new applicant is permitted. Prior qualifying applications may apply for a top-up of funds if they are eligible under the program parameters and guidelines.
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 and need to ensure resubmitted applications are complete 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:
The contribution must be fully repaid by December 31, 2025.
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.
IF YOU RECIVE $40,000 OR LESS:
Repaying 75 percent of the loan amount, or up to $30,000, on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000).
IF YOU RECEIVED MORE THAN $40,000 AND UP TO $60,000:
The terms of your forgiveness will be subject to the following thresholds:
25 percent on the first $40,000; plus
50 percent on amounts above $40,000 and up to $60,000.
For clarity, the portion of forgiveness based on a rate of 25 percent and the portion of forgiveness based on a rate of 50 percent are blended into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is received, no forgiveness is available unless $40,000 is repaid.
(Examples of the forgiveness calculation are included in the FAQ)
Repayment Schedule:
No payments are required until January 1, 2023, but applicants can opt to make payments any time until December 31, 2022.
If the non-forgivable portions of the RRRF loans (75 percent of the first $40,000 and 50 percent of the subsequent amount up to $20,000) are not repaid by December 31, 2022, the balance owing will be converted to an additional three-year contribution (fixed repayment schedule), beginning January 1, 2023, with no forgivable portion.
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.
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 quarterly business recovery information following receipt of the funds, until full repayment of the loan. This information 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 additional alternate funding or 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