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New Funding For COVID-19 Business Recovery Loans

November 10, 2020 Mentor WorksIndustry News and Events 170 Views

Regional Relief and Recovery Fund (RRRF) Received New Funding For COVID-19 Business Recovery Loans

The FedDev and FedNor Regional Relief and Recovery Fund (RRRF) has been crucial in stabilizing businesses struck by COVID-19 by offering federal relief funds to address urgent needs. The program provides interest-free loans of up to $1M towards supporting fixed operating costs for Ontario businesses.

Since the interest-free loan was introduced in May of 2020, more than 12,000 businesses have received funding to help retain employees, cover costs, and stay profitable. The RRRF support has aided in protecting an estimated 95,000 jobs across Canada. An additional $600 million has been added to the program by the federal government.

RRRF has been extended and expanded to supports businesses fixed costs of up to a maximum of $1,000,000 interest-free loan.

There are two versions of the RRRF program, with the first being administrated by FedDev for businesses located in Southern Ontario, and the other being administrated by FedNor for Norther Ontario businesses. Their amounts and eligibility criteria are below:

FedDev RRRF Southern Ontario Program Breakdown:

  • Amount:
    • Funding Option 1: Up to $40K conditional repayable 0% loan;
    • Funding Option 2: Up to $1M unconditionally repayable 0% loan;
  • Eligible businesses: SME (1-499 employees), co-operative or an Indigenous business located in Southern Ontario and is facing funding pressures with fixed operating costs.
  • Eligible projects: Help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic.
  • Timeline: Ongoing intake. The timeframe to consider costs is March 15, 2020, to March 31, 2021.

FedNor RRRF Northern Ontario Program Breakdown:

  • Amount:
    • Funding Option 1: Up to $40K conditional repayable 0% loan;
    • Funding Option 2: Up to $250K unconditionally repayable 0% loan;
    • Funding option 3: Grant of up to $250K for not-for-profits
  • Eligible businesses: SMEs (1-499 employees) or Not-for profits located in Northern Ontario can apply.
  • Eligible projects: Help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic.
  • Timeline: Ongoing intake. Can claim costs retroactively to March 15, 2020 over a six month period.

How to Apply for RRRF Government Funding Support

RRRF applications are currently being accepted with no submission deadlines until the allocated funding has been depleted. Eligible applicants may receive advance payments of up to 80-100% of eligible costs after the assessment and approval stages.

To apply for pandemic relief funding through the RRRF, businesses must be incorporated in Canada with 500 full-time employees or less, have applied to other pandemic relief programs to gauge eligibility, and be facing financial pressures as a direct result of COVID-19 impacts.

Connect with a member of the Mentor Works team to discover how your business can access funding opportunities through the RRRF or alternative government funding programs. To explore additional coronavirus-related government support programs, please visit our simplified COVID-19 Support page.