May 15, 2020 RCCFDC

Regional Relief and Recovery Fund – FAQ

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Q1.     What does this new funding include?

A1.     This is a special one-time relief fund established by the Government of Canada to

support businesses, organizations and communities impacted economically by the COVID-19 pandemic.

On May 13, 2020 FedDev Ontario launched the RRRF for SMEs in Southern Ontario facing financial pressures due to COVID-19.

As a strategic partner, Renfrew County Community Futures Development Corporation (RCCFDC) is well-positioned as a key resource in our communities to offer the targeted support needed by local SMEs. The RRRF in Renfrew County is capped at $995,000.

 

Q2.     What does this funding support?

A2.     The government has introduced several measures to support businesses affected by COVID-19, as part of the Government of Canada’s COVID-19 Economic Response Plan. Small businesses are the backbone of our economy and many have limited access to traditional financial institutions or other business service providers.

The RRRF is targeted support for SMEs that do not qualify for, or have been declined for, current Government of Canada COVID-19 relief measures.

Funding is available through two streams:

  1. Direct support through FedDev Ontario for SMEs facing financial pressure due to COVID-19. http://www.feddevontario.gc.ca/RRRF
  1. Support through RCCFDC focusing on “Sole Proprietorship main street” businesses and small/micro enterprises, including, for example, retail shops, restaurants, corner stores, tourism related businesses etc. and businesses of strategic importance to the community or a social enterprise. Eligible SMEs can apply by going to directly through our website rccfdc.org/financing

Applicants must demonstrate through an attestation that they have not or will not apply for or accept other equivalent Government of Canada support.

 

Q3.      What support does this funding offer to small businesses in rural southern Ontario?

A3.      RRRF, loans provided by RCCFDC to businesses in Renfrew County are intended to help support fixed operating costs, where business revenues have been affected by the COVID-19 pandemic.

RCCFDC will be able to issue loans to a maximum of $40,000 at zero percent interest. If the loans are repaid in full prior to December 31, 2022, 25 percent (to a maximum of $10,000) will be forgiven.

Applicants interested in higher amounts should apply directly to FedDev Ontario. http://www.feddevontario.gc.ca/RRRF

 

Q4.      Who can apply for funding and what are the eligibility criteria?

A4.      This new funding supports businesses impacted by the COVID-19 pandemic who are unable to access existing federal relief measures.

If you are an SME in Renfrew County interested in a loan to a maximum of $40,000 to help your business, you may be eligible to receive RRRF support from RCCFDC.

Please note there are thousands of businesses in Renfrew County that may be eligible for funding from the RRRF and in an effort to support as many businesses as possible, applications may not be approved for the amount of the original request.

Eligible Applicants:

  • Funding is available to SMEs that are either ineligible or rejected from other government relief measures, or that have operating expenses in excess of the support received.
  • RCCFDC will give priority to “Sole Proprietorship main street” businesses and small/micro enterprises, including, for example, retail shops, restaurants, corner stores, tourism related businesses etc. and businesses of strategic importance to the community or a social enterprise.
  • Eligible applicants must also meet the following criteria which will be captured in an attestation.
  • established prior to March 1, 2020
  • impacted adversely due to the COVID-19 pandemic
  • viable and not experiencing financial difficulties prior to March 1, 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.

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

Applicants must demonstrate through an attestation that they have not or will not apply or accept other equivalent Government of Canada support.

 

Q5.      What are the lending terms required for the loans coming from this funding?

A5.      Loans made by RCCFDC will include the following terms:

  • Zero percent interest until December 31, 2022.
  • No principal payments until December 31, 2022.
  • Principal repayments can be made voluntarily at any time.
  • 25 percent up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is repaid by December 31, 2022.
  • If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan at up to five percent annual interest. Effective January 1, 2023.
  • The full balance must be repaid no later than December 31, 2025.

 

Q6.      What is the application process?

A6.      Applications for funding under the RRRF program from RCCFDC will be available on our website on Tuesday, May 19, 2020 by 4 PM EST.

The application process will be publicly available until all funding is allocated which is expected to be exhausted over the next 6-8 weeks.

Applicants are encouraged not to delay in submitting applications as demand is expected to be very high.

To Apply:

  • Go to rccfdc.org/financing
  • Scroll down to the fillable form; enter your contact information and click “send”.
  • An application will be automatically sent to your email address (Please note the application will not be live until Tuesday, May 19, 2020 at 4 PM EST). If you don’t receive the application within five minutes (don’t forget to check your junk mail), contact info@rccfdc.org
  • Email your completed application to submissions@rccfdc.org

 

Q7.      What considerations will drive funding decisions?

A7.      RCCFDC will prioritize assistance to “Sole Proprietorship main street” businesses and small/micro enterprises, including, for example, retail shops, restaurants, corner stores, tourism related businesses etc. and businesses of strategic importance to the community or a social enterprise.

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.

 

Q8.      When will decisions on applications be made and announced?

A8.      Applications will be assessed as they are received. RCCFDC will respond as quickly as possible using a streamlined approach and communicate directly with the applicant once a decision has been made.

 

Q9.      Can I apply if I am already receiving Government of Canada funding?

A9.      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.

  

Q10.    How does this Fund differ from other COVID-19 funding measures announced?

A10.    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 SMEs that are ineligible under other federal COVID-19-related support programs, or that have operating costs in excess of the funding they have received.

 

Q11.    Can a tourism-related business or organization apply for funding?

A11.    Yes, tourism-related businesses can apply. However, funding is not available for not-for-profit tourism organizations.

 

Q12.    Is there support available to Indigenous businesses?

A12.    Yes. Indigenous SMEs are encouraged to apply through the RCCFDC 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.

Applicants are encouraged not to delay in submitting applications as demand is expected to be high.

 

Q13. Can a business apply to both FedDev Ontario and RCCFDC?

A13.    A business may apply to both FedDev Ontario and a RCCFDC but cannot receive RRRF funding from both.

If you are a rural “Sole Proprietorship main street” businesses and small/micro enterprises, including, for example, retail shops, restaurants, corner stores, tourism related businesses etc. and businesses of strategic importance to the community 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 RCCFDC.

Corporations 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 RCCFDC.

  

Q14.    What support is available for businesses that do not fit into the two streams?

A14.    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.

RCCFDC is also there to offer technical support and financing for rural businesses.

 

Q15:   Since RCCFDC offered a COVID-19 Relief Loan since March 18, 2020 at         preferred interest rates, can these loans be redone under the new RRRF               

stream at zero percent? 

A15:    No! The intent of the RRRF is to support businesses that have

been rejected or ineligible for other government relief measures. If a SME is already receiving assistance through a RCCFDC 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 RCCFDC 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 RCCFDC emergency loan be transferred/ported over into an RRRF loan.