Program details: Regional Relief and Recovery Fund

Eligibility

Authorized costs

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.

• Details

  • 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 12 consecutive months between March 15, 2020 and September 30, 2021;
  • 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.

Financial assistance

• In the case of SMEs or NPOs engaged in commercial activities, the contribution is repayable .
• In the case of not-for-profit economic or business support organizations NOT engaged in commercial activities (including festivals and sporting events), the contribution is non-repayable.
• In all cases, the amount of the contribution will generally not exceed $1 million.
• Repayment conditions:
1. Businesses seeking financial assistance of $60,000 or less:
   a) not benefiting from the Canada Emergency Business Account (CEBA): The financial contribution is considered repayable, taking into account certain special conditions. A portion of the contribution (up to $20,000) could become non-repayable if specific repayment terms are met by December 31, 2022. Otherwise, the entire contribution is considered repayable over a period of 3 years starting January 1, 2023.
   
b) benefiting from the Canada Emergency Business Account (CEBA):The entire financial contribution is considered repayable over a five-year period starting January 1, 2023.
2. Businesses seeking over $60,000 in financial assistance: The entire financial contribution is considered repayable over a five-year period starting January 1, 2023.
3. Not-for-profit business support organizations: The contribution is non-repayable.

Main analysis criteria

• You 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.

Considerations

• 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, or 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.
• At least 25% of the total RRRF funding will be allocated to the tourism sector. Supported projects may be prioritized on this basis.