Program details: Regional Relief and Recovery Fund
Details of the initiative
The RRRF provides emergency financial relief for SMEs and NPOs that do not have access to all the assistance they need from the government of Canada, in order to help them stay in business.
The funding will be in line with other emergency relief measures, while avoiding duplication of government support.
- Duration: up to March 31, 2021;
- Continuous project intake (until all the available funding has been allocated).
Authorized costs include costs that help stabilize the SMEs and organizations and mitigate the impact of COVID-19, and which are not fully covered by other relief measures from the government of Canada. Costs may include operating expenses to maintain the organization's operations.
- The need for assistance must be solely related to an immediate (one-time) financial pressure on liquidity (working capital for SMEs, or cash-flow requirements for NPOs), and must be a consequence of COVID-19;
- The need for assistance must be for a maximum of 6 months (from March 15, 2020, to no later than December 31, 2020);
- The assistance cannot cover needs associated with the preparation of the recovery (e.g., fixed assets and equipment);
- Some costs are ineligible such as debt principal repayment and expenses covered by other programs.
The RRRF is intended for all of Quebec’s economic sectors (aviation, food production, manufacturing, retail, technology, tourism, etc.). Community organizations or social not-for-profit organizations are not eligible for funding. Certain eligibility restrictions apply to self-employed workers and sole proprietorships.
- In the case of businesses or commercial NPOs, the contribution is repayable (see the Repayment conditions section at the bottom of this page);
- In the case of NPOs (non-commercial), the contribution is non-repayable;
- In all cases, the amount of the contribution will generally not exceed $500,000.
Main analysis criteria
- One application per client;
- To be eligible for CED funding, organizations must have applied for other emergency relief measures from the government of Canada prior to submitting an application under the RRRF;
- CED funding must only be used to address immediate (one-time) financial pressures from COVID-19;
- The business must have a post-COVID viability perspective.
- The funding must be in line with other government measures:
- The need for assistance must be demonstrated, including assistance received from the provincial government and municipalities;
- Financial viability must be demonstrated by financial statements for the last two fiscal years (if unavailable: income tax returns).
- Depending on the number of applications, CED may have to prioritize businesses that have not received any assistance from the government of Canada.
- Repayment conditions:
- Businesses seeking financial assistance of $40,000 or less: The financial contribution is considered repayable, taking into account certain special conditions. If 75% of the contribution is repaid by December 31, 2022, the remaining 25% becomes non-repayable; otherwise, the entire contribution is considered repayable over a three-year period, starting January 1, 2023.
- Businesses seeking over $40,000 in financial assistance: The entire financial contribution is considered repayable over a five-year period (based on a pre-determined repayment schedule), starting January 1, 2023.
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