FedDev Ontario – Regional Relief and Recovery Fund (RRRF) (2021)

  • This program is currently closed.

Description:

The RRRF is a liquidity lifeline for businesses and organizations impacted by the economic disruption associated with the COVID-19 pandemic in nearly every sector of the economy. It aims to address gaps in or supplement other federal relief measures, as well as complement those provided by other levels of government.

Comments on Funding:

RRRF funding may support operating costs incurred during the first year of the pandemic, up to a maximum of $1 million.

Funding of $40,000 or less will take the form of a conditionally repayable contribution (interest-free loan). RRRF loans will normally support six months of eligible and supported fixed operating costs, up to a maximum of $40,000.

Features:

  • interest-free;
  • partially repayable: up to 25% to a maximum of $10,000 may be forgiven provided that 75%, or up to $30,000 is repaid by December 31, 2022;
  • no payments required until January 1, 2023, but applicant can opt to make payments any time until December 31, 2022;
  • repayment schedule: if 75% of the contribution amount is not repaid by December 31, 2022, the balance owing will be converted to an additional three-year contribution (fixed repayment schedule), beginning January 1, 2023, with no forgivable portion;
  • full balance due: the contribution must be fully repaid by December 31, 2025.

Funding over $40,000 up to $1,000,000 will take the form of an unconditionally repayable contribution (interest-free loan). RRRF loans will normally support six months of eligible and supported fixed operating costs, up to a maximum of $1 million.

Features:

  • interest-free;
  • fully repayable: 100% of the contribution to be repaid;
  • no scheduled monthly payments required until January 1, 2023;
  • repayment period: scheduled payments to FedDev Ontario start on January 1, 2023.

Organizations such as chambers of commerce, business sector associations and other economic development organizations that provide support to businesses are now eligible to apply for the RRRF for non-repayable loans.

Financial assistance is interest-free.

Support under $100,000 will be advanced in a single payment directly to organizations.Financial assistance covers up to 100% of eligible costs

Eligibility:

Applicant must:

  • be Canadian or provincially-incorporated businesses, co-operatives, partnerships or an Indigenous-owned businesses with 1 to 499 full-time equivalent employees; or
  • be organizations, including social enterprises, that are engaged in commercial activities as a significant portion of operations (i.e., the exchanging of goods or services); or
  • be chambers of commerce, business or sector associations and other economic development organizations that provide support to businesses;
  • be located in southern Ontario;
  • be facing funding pressures with fixed operating costs, as a result of the COVID-19 pandemic;
  • have applied to other Government of Canada COVID-19 relief measures for which they are eligible, as outlined in the program guidelines;
  • have been operational prior to March 15, 2020;
  • be financially viable;
  • plan to continue to operate or resume operations;
  • have an active business chequing/operating account.
  • have applied for other federal relief measures and have not been able to secure funds; or accessed federal COVID-19 relief measures and continue to experience hardship.

Applications Steps:

Applicant must:

2

attach all documentation to their Application for Funding;

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    Documentation Needed:

    Applicants must include the following mandatory documentation as an attachment to the PDF form:

    1. historical financial statements for the last two fiscal years (2018 and 2019) either in the form of an Audit, Review Engagement or Notice to Reader;
    2. most recent interim financial statement (2020); 
    3. incorporation documents, and/or Partnership Agreement, Letters Patent or other relevant documentation; and
    4. a completed Officer’s Certificate.

    Note: Internally-prepared financial statements are accepted. At a minimum, this should include a balance sheet, income statement (including a breakdown of costs), and statement of cash flow. If the organization has existed for less than one year, or if the organization’s financial statements are not available for the current operating year, financial information provided must be attested by the CFO, or by the CEO or equivalent, if an organization does not have a CFO.

    Other Things to Note:

    When RRRF was launched in May 2020, $252.4 million in liquidity support was provided for southern Ontario businesses. On October 2, 2020, an additional $184 million was made available to FedDev Ontario to continue to help organizations in southern Ontario deal with the ongoing economic impacts of COVID-19.

    FedDev Ontario provides direct funding or indirect funding through CFDCs. RRRF funding through CFDCs will be limited to contributions of $40,000 or less.

    Covid Related Measures:

    COVID business support program

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