Regional Relief & Recovery Fund

Western Economic Diversification Canada (WD) is collaborating with Community Futures Pan West to deliver the Fund in Western Canada.

Community Futures offices are supporting rural businesses requesting $60,000 or less. These businesses should apply through their local Community Futures office if they are eligible.

If you are a rural business requesting more than $60,000 you should apply through Western Economic Diversification Canada.

• Small and Medium-Sized Enterprises (SMEs) located in non-metropolitan regions (all areas served by Community Futures organizations) in Western Canada.
• SMEs must attest they have not received duplicative supports through other federal or provincial government COVID-19 support programming such as the Canada Emergency Business Account.
• The small business must have been viable and not experiencing any liquidity or other financial difficulties as of March 1, 2020.
• The small business must have experienced a material adverse effect on business operations on or after March 1, 2020 as a result of the COVID-19 pandemic.
• Business established before March 1, 2020.
• Be a sole proprietorship, partnership, corporation, social enterprise, or other similar organization.

• Lease payments for existing equipment and machinery;
• Salaries and benefits (will only be considered for support if the business has not received support under the Canada Emergency Wage Subsidy (CEWS);
• Property taxes;
• Utilities;
• Bank charges and interest payments;
• Office supplies;
• Vehicle operating expenses;
• Professional fees;
• Monthly insurance payments;
• Rent (applicants are expected to pursue with their landlord access to the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses); and
• Other fixed operating costs applicable to the applicant.

• Maximum assistance will be $60,000;
• 0% interest and no principal payments until December 31, 2023;
• Principal repayments can be voluntarily made at any time;
• If you repay the outstanding balance on or before December 31, 2023, the following percentage of the contribution will be forgiven:
  • 25% on the first $40,000; and
  • 50% on amounts above $40,000 and up to $60,000;
• The forgivable portion is only available if the entire outstanding amount is repaid by December 31, 2023;
• If the Client is unable to repay the loan by December 31, 2023, the loan will be converted to a two-year term loan with interest rates up to 5%, effective January 1, 2024.  The full balance must be repaid no later than December 31, 2025.

Both the Regional Recovery and Relief Fund (RRRF) and Canada Emergency Business Account (CEBA) provides eligible small and medium-sized enterprises (SMEs) with an interest-free repayable loan of up to $40,000 to help alleviate financial hardship resulting from COVID-19.

Under the RRRF-CF Stream, rural SMEs including sole proprietors and social enterprises are eligible to apply for financing of up to $40,000.

Rural and urban businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors, and family-owned corporations that pay employees through dividends rather than payroll may now be eligible for financing of up to $40,000 through CEBA.

Under the RRRF–CF Stream and CEBA, applicants can receive up to $40,000 regardless of the operating balance of their business.

To qualify for CEBA under the new eligibility requirements, small business applicants with payroll lower than $20,000 would need a business operating account at a participating financial institution, a Canada Revenue Agency business number, they must have filed a 2018 or 2019 tax return and must have eligible non-deferrable expenses of $40k to $1.5M.

To qualify for the RRRF-CF Stream, SME applicants with payroll lower than $20,000 don’t necessarily need a business operating account or a Canada Revenue Agency business number.

As the financing terms of RRRF-CF stream and Canada Emergency Business Account (CEBA) are similar, rural businesses can choose which program to apply to for funding. Applicants can only receive funding from ONE of these federal programs, not both.

Funding offered through Community Futures (CF) is intended for rural small and medium-sized enterprises (SMEs), particularly main street businesses and small/micro enterprises (including sole proprietors and social enterprises), located in communities serviced by a CF office. CF offices will deliver loans up to a maximum of $40,000.

SMEs located in an urban area or those requesting assistance above $40,000 should apply directly to Western Economic Diversification (WD). WD’s RRRF funds are available to businesses that are not eligible for CEBA or the RRRF-CF Stream. To qualify for WD RRRF funds, applicants must:

• Have fewer than 500 full-time employees. Sole proprietorships and not-for-profit organizations ARE NOT eligible
• Must be located in BC, Alberta, Saskatchewan or Manitoba and intend to continue operations in Western Canada
• Must not be located in an area serviced by a Community Futures office and must not be eligible for the RRRF-CF Stream funds
• Must have applied and been declined for CEBA funds or were not eligible to receive CEBA funds
• Must have been operational as of March 1, 2020 and have suffered financially due to the COVID-19 pandemic