Regional Relief and Recovery Fund

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.

Funding available through Trenval

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.

Eligible CFDC applicants must also meet the following criteria:

  • established prior to March 1, 2020;
  • impacted adversely by the COVID-19 pandemic;
  • viable and not experiencing other financial difficulties prior to March 1, 2020;
  • have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses that have not been supported, with priority given to applicants who were ineligible or rejected from other federal relief supports.
  • Please review the Trenval Program Guidelines for other eligible costs and local priorities

Applications can be submitted for:

  • Loans of up to $40,000 to help address working capital needs.

Next steps:

  1. Review the Trenval RRRF Guidelines for full program details.
  2. Complete the RRRF Application Form.  Save the document with your business name in the file name.
    • You may sign it digitally or print, sign and scan.
    • Use Adobe Reader to fill out and save form. Download for free here
  3. Gather the supporting information – see the required information in the application.
  4. Email all the documents to ebrown@trenval.ca
  5. Review Frequently Asked Questions here

Note: In order for us to review your application, all required documents must be submitted.

Overview

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:

  • Were ineligible, rejected, or require funding in excess of support already received, with priority given to applicants who were ineligible or rejected for other Government of Canada COVID-19 relief measures.

Scope and Objectives

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.

Eligibility

Eligible Applicants

  • A registered viable business, prior to March 01, 2020, operating within the jurisdictions of either the City of Belleville, City of Quinte West, Tyendinaga Township, Stirling-Rawdon, Deseronto or Tyendinaga MBQ;
  • Impacted adversely and facing funding pressures with fixed operating costs, as a result of the COVID-19 pandemic;
  • Viable business pre-COVID and able to demonstrate healthy financial position prior to March 01, 2020.
  • Have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses in excess of support already received, with priority given to applicants who were ineligible or rejected from other federal relief supports; and
  • Attest of other federal support measures that applicant has applied form, was ineligible or rejected by, or still experiencing ongoing financial pressures despite accessing other measures, including but not limited to:
    1. Canada Emergency Business Account (CEBA);
    2. Business Credit Availability Program (BCAP);
    3. Canadian Emergency Commercial Rent Assistance (CERCRA), or other rent relief provided through an organization’s landlord
    4. Canada Emergency Wage Subsidy (CEWS)
    5. CRA Temporary 10% Wage Subsidy
    6. Service Canada Work-sharing program
    7. NRC-IRAP Wage Subsidy
    8. Indigenous Business Support Loans
    9. BDC Co-Lending Programs for SMEs
    10. EDC Loan Guarantee Program
    11. Other federal programs announced.
  • Planning to continue to operate its business or resume operations; and

Ineligible Applicants

  • Post-secondary Institutions, Learning and educational organizations;
  • Government organizations or bodies, or entities owned by a government organization or body including but not limited to social services, community and civil society mandated organizations;
  • Sports and recreation organizations;
  • Unions, charitable, religious or fraternal organizations or entities owned by such an organization;
  • Environmental or conservation organizations;
  • Entities that are structured as a holding company; and
  • Entities owned by individuals holding federal or provincial political office holding federal or provincial political office.

Eligible Activity

SME funding support for fixed operating costs, where business revenues have been affected by the COVID-19 pandemic.

Eligible Costs

May include:

  • Commercial rent;
    • Applicants are expected to pursue with their landlord access to the Canadian Emergency Commercial Rent Assistance (CECRA) for small businesses (details on CECRA); and
  • Capital lease payments for existing equipment and machinery;
  • Salaries and benefits
    • Will only be considered for support if the business is not eligible or declined support from the Canada Emergency Wage Subsidy or the NRC-IRAP- Innovation Assistance Program for pre-revenue businesses;
  • Property taxes;
  • Utilities;
  • Cleaning supplies and additional safety measures;
  • Bank charges and interest payments;
  • Professional fees;
  • Insurance payments;
  • Other eligible expenses associated with retooling, rethinking workflows, automation, robotics, developing new markets, etc.;
    • Other fixed operating costs applicable to the applicant. Applicants are expected to pursue with their landlord access to the Canadian Emergency Commercial Rent Assistance (CECRA) for small businesses; and
  • Other fixed operating costs applicable to the applicant.

Ineligible Costs

  • Any costs deemed not reasonable and/or not directly related to a business’ fixed operational expenses except for one-time stabilization expenditures related to operating in the context of COVID-19, including sanitary, distancing measures and/or one-off adaptation cost;
  • Monthly mortgage and loan payments;
  • New capital expenditures;
  • Refinancing of an existing debt;
  • Costs of amortization and goodwill; and
  • Acquisition of land and buildings.
  • Inventory or costs associated with future growth or income (I.e.: fixed assets and equipment).

Priorities

If there is significant demand for the funding available, priority may be given to SMEs within our catchment area that:

  • Have been in operation for 2 years or more;
  • “Main street” businesses such as retail shops, restaurants, corner stores, i.e., coffee shops, florists, dry cleaners, auto repair and salons, etc., followed by organizations of strategic importance to the community;
  • Have a personal credit history that can be measured to determine your personal financial health. The maximum eligible loan amount will be based on this measure. Find out more about your credit report and score basics;
  • Support the government’s commitment to inclusive growth (i.e., women, Indigenous peoples, youth, persons with disabilities, visible minorities, newcomers, LGBTQ2) and Official Language Minority Communities.

Application process

Applications for funding are accepted on an ongoing basis with no submission deadlines, until the Fund is fully committed.

To Apply:

  1. Complete Trenval RRRF Application Form
  2. Submit all required documents to ebrown@trenval.ca (Call 613-961-7999 for direction as required)

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.

Application review

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:

  • Impact of COVID-19 pandemic on business operations;
  • Availability of other financial supports (e.g., access to credit at a financial institution and other federal COVID-19 measures);
  • Viability of the applicant (i.e., ability to repay the contribution);
  • Economic benefits of RRRF support;
  • Priorities as outlined.

Funding

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.

Loan Security

All approved applications will require the following loan documentation to be signed:

  • Offer to Finance
  • Promissory Note
  • General Security Agreement
  • Personal Guarantee(s) if incorporated
  • Pre-Authorized Payment (PAP) Agreement
  • Attestation of attempt to access other federal support measures

Electronic signatures will be accepted on all loan security documents as needed.

Reporting

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:

  • Narrative describing how the contribution received has mitigated the impacts of COVID-19 on the SME;
  • Number of jobs maintained as a result of the contribution received;
  • Confirmation that the SME is continuing its operations; and
  • Other metrics as may be requested by Trenval or FedDev Ontario.

The SME must also submit a copy of their financial statements within one hundred and eighty (180) calendar days of their fiscal year.

Additional/Alternate Funding Options

  • Incorporated SMEs may also be eligible to receive RRRF support from FedDev Ontario, for amounts up to $1,000,000.
    • However, they cannot receive funds from both a CFDC and FedDev Ontario. Please visit the FedDev Ontario website for more information on eligibility criteria for direct funding.
  • Incorporated SMEs with funding needs of $40,000 or more should apply directly through FedDev Ontario, as RRRF funding through CFDCs will be limited to contributions of $40,000 or less. Please visit the program guidelines.

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.

Frequently Asked Questions

Review Frequently Asked Questions here