Regional Relief and Recovery Fund (RRRF)

Financial contributions (interest-free-loans) up to $40,000 to help support fixed operating costs directly to Small and Medium-sized Enterprises (SMEs) and Social Enterprises where business revenues have been affected by the COVID-19 pandemic on rural and remote communities, contributing to their short-term stability.

The goal of the Regional Relief and Recovery Fund local component delivered by Northumberland CFDC is to support small enterprises at a local level such as “main street” businesses, for example retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $40,000 that are unable to access federal and provincial relief funding programs, or unable to obtain a loan/credit from traditional financial institutions, and are struggling with working capital needs.

Eligibility
  • Small- and medium-sized enterprises (SMEs) and Social Enterprises operating in Northumberland County. Priority will be given to Sole Proprietors and “main street” businesses, such as retail shops, restaurants, corner stores, etc. and businesses of strategic importance to the community.
  • Impacted adversely due to the COVID-19 pandemic
  • Viable and not experiencing financial pressures or other financial difficulties prior to March 1, 2020
  • Have attempted to access other federal or provincial 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 and provincial relief supports
  • Have not or will not apply or accept other Government of Canada or Province of Ontario equivalent support

*Note that businesses may also be eligible to receive RRRF funds from FedDev Ontario but will not receive RRRF assistance from both a CFDC and FedDev Ontario.

RRRF Fund Terms
  • Loans of up to $40,000 to help address working capital needs
  • 0% interest and no principal payments until December 31, 2022
  • Voluntary principal repayments can be made at any time
  • No Application fee, no pre-payments fees
  • 25% (not to exceed $10,000) of any loan can be forgiven provided the recipient has paid 75% of the original loan amount prior to December 31, 2022
  • If the recipient is unable to repay the loan by December 31, 2022, the loan will be converted to a three-year term loan with interest rates up to 5%, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025.
  • Monthly reporting required
Eligible Costs
  • To support costs of SMEs that will address financials pressures and mitigate the impacts of COVID-19.
  • Costs such as rent, salaries and benefits will only be considered if the applicant is ineligible, rejected and/or not already receiving assistance for these costs from other federal and provincial funding measures.
Other Information, Terms and Conditions
  • All applications will be evaluated using standard Community Futures Program credit evaluation criteria (click here for more information)
  • Northumberland CFDC reserves the right to request additional information and documentation in furtherance of due diligence in evaluation of all loan applications
  • Promissory Note, General Security Agreement, Personal Guarantees (for corporate clients) and assignment of relative insurance will be required loan documentation
  • With respect to physical distancing, Northumberland CFDC staff will engage in virtual meetings with loan clients (if required)
  • Closing (via DocuSign) is available, with electronic transfer of loan funds where possible.
  • No amount is guaranteed to any applicant
Additional RRRF Information

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.
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In southern Ontario, $252.4 million is available as follows:

  • $213 million for SMEs facing financial pressure; and
  • $39.4 million to provide rural businesses with access to capital and technical support, delivered by southern Ontario’s Community Futures Development Corporations.

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Funding available through your local CFDC
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.

RRRF Frequently Asked Questions

Q: How much funding are applicants eligible to receive from the CFDCs?
Loans of up to $40,000 are available through the CFDCs. Those seeking loans over $40,000 should consult the program guidelines and eligibility criteria for RRRF Funding through FedDev Ontario.
Q: What considerations will drive funding decisions?
CFDCs will prioritize assistance to “main street” businesses, including, for example, retail shops, restaurants, and corner stores, etc., as well as businesses of strategic importance to the community.
Eligible SMEs will have to demonstrate the financial hardship they are experiencing as a result of COVID-19 and the need for financial assistance to support their fixed operating costs during this period.
While SMEs that have already received funding from other federal relief measures can still apply if their funding requirements exceed support received to-date, priority will be given to SMEs who have been deemed ineligible or declined from accessing other COVID-19 federal relief measures.
Q: When will decisions on applications be made and announced?
Applications will be assessed as they are received. It is expected that CFDCs will respond as quickly as possible using a streamlined approach and communicate directly with the applicant once a decision has been made.
Q: Can I apply if I am already receiving Government of Canada funding?
This funding is intended to address gaps for firms that are ineligible under other Government of Canada COVID-19-related support programs.
If you have attempted to access other relief federal supports and are ineligible or were declined, or if you received funding and have operating expenses in excess of the support received, you may apply (please note that priority will be given to those who have been rejected or ineligible for receiving other government relief measures).
Applicants must demonstrate through an attestation that they have not or will not apply or accept other equivalent Government of Canada support.
Q: How does this Fund differ from other COVID-19 funding measures announced?
This funding is intended to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic. It is intended to address gaps for firms that are ineligible under other federal COVID-19-related support programs, or that have operating costs in excess of the funding they have received (priority will be given to those SMEs who have thus far been deemed ineligible or rejected from accessing these other government supports).
Q: Can a tourism-related business or organization apply for funding?
Yes, tourism-related businesses can apply. However, funding is not available for not-for-profit tourism organizations.
Q: Is there support available to Indigenous businesses?
Yes. Indigenous SMEs are encouraged to apply through the CFDC that services their community. They are also eligible to apply directly to FedDev Ontario for support under the RRRF.
Similar to other applicants, Indigenous SMEs will have to demonstrate that they were either unable to access other government relief measures, or require additional support.
Q: When does the window for applications open and when will it close?
Applications are accepted on an ongoing basis with no submission deadlines. However, do not delay in applying as interest in the RRRF is expected to be high. Applications will be accepted and reviewed when received until the Fund is fully committed.
Q: Can a business apply to both FedDev Ontario and a CFDC?
A business may apply to both FedDev Ontario and a CFDC, but cannot receive RRRF funding from both.
If you are a rural “main street” businesses including, for example, retail shops, restaurants, and corner stores or a social enterprise interested in a loan of up to $40,000 to support your COVID-19-affected business, you should consider applying for RRRF support from your local CFDC.
Other rural SMEs seeking up to $40,000 or firms interested in higher rates of support should apply directly to FedDev Ontario. Please visit the FedDev Ontario website and review the program information and applicant toolkit for more information and help determining which stream is right for you. Should you have additional questions, please call your local CFDC.
Q: Can a loan client who received a preferred rate for COVID-19 Relief transfer their approved loan to this funding given 25 percent is potentially forgivable?
Under no circumstances can an existing loan be converted to a loan under the RRRF. Existing recipients must re-apply for support under RRRF.
If a loan client received a preferred rate loan for COVID-19, they would not receive priority under the RRRF intake.
Q: What support is available for businesses that do not fit into the two streams?
The Government of Canada has introduced a number of measures to support businesses, organizations, workers and communities through the COVID-19 global challenge, as part of Canada’s COVID-19 Economic Response Plan.
As well, FedDev Ontario offers a number of existing programs and services to help businesses, not-for-profits and communities grow.
Your local CFDC is also there to offer support, financing and assistance with strategic planning for rural businesses.
Q: Since our CFDC offered emergency loans for COVID relief since March 21 at preferred interest rates, can these loans be redone under the new RRRF stream at zero percent?
The intent of the RRRF funds is to support businesses that have been rejected or ineligible for other government relief measures. If a SME is already receiving assistance through a CFDC emergency loan, it would be difficult to argue they meet that criteria. If the financial need is greater than what was already provided through the CFDC emergency loan, these SMEs can be encouraged to apply for additional support under the RRRF if they meet the criteria. To be clear, under no circumstance can an existing CFDC emergency loan be transferred/ported over into an RRRF loan.
Q: What is the definition of an SME and a Social Enterprise?
“SMEs” means “small and medium-sized enterprises” having less than 500 employees and annual sales revenue of less than $20 million, which produce goods and services for the market economy, regardless of their business or legal structure (e.g. sole proprietorships, for-profit or non-profit corporations, cooperatives, etc.).
“Social Enterprises” means businesses producing goods and services for the market economy that manage their operations and redirect their surpluses in pursuit of social, environmental and community goals.

Application Package
Application Package includes:

  • Applicant Attestation for Labour Costs and COVID-19 Wage Subsidies
  • Application for Financing
  • Personal Statement
  • Supporting Documentation Checklist

Notes:

  • Please note application package is a combined Attestation and Application Form.
    Applicants must sign both the Attestation and Application sections.
  • By completing and signing this application, you are attesting and representing and warranting that all information herein is true and complete to the best of your knowledge.
  • All fields must be completed unless indicated otherwise.
  • The completed Application for Financing and Attestations form and required supporting documents should be submitted by email to: RRRF@northumberlandcfdc.ca

Supporting documents required:

  • Articles of Incorporation and/or Business Registration
  • Financial Statements- Balance Sheet and Income Statement for last year, in-house year to date financial statements
  • 2018/2019 Tax Information – CRA Form T2 for Corporations and Notice of Assessment for Sole Proprietors
  • CRA Source Deductions and HST Statements for last remittance period
  • Personal Identification for each Owner, preferably a driver’s license and passport
  • Copy of current Lease Agreement
  • Business Bank Statements or Account Activity printouts for April & May 2020

Apply Now for a RRRF Business Loan

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RRRF Funding available directly through FedDev Ontario


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.

Should you be interested in a loan of $40,000 or more and meet the following eligibility criteria, you may wish to apply to FedDev Ontario for direct funding.

Eligible applicants must
  • Be a Canadian or provincially incorporated business, co-operative or an Indigenous-owned business located in southern Ontario with 1 to 499 full-time equivalent employees;
  • Be facing funding pressures with fixed operating costs as a result of COVID-19;
  • Have been a viable business before the COVID-19 pandemic and plan to continue to operate their business or resume operations.
  • Have already applied to other Government of Canada emergency credit relief measures for which they are eligible, as outlined in 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 us if you have any questions before applying.