Regional Relief and Recovery Fund - Program guidelines
The Regional Relief and Recovery Fund (RRRF) has been extended and expanded in southern Ontario.
The expanded parameters include increases in contribution amounts and forgivable portions and the timeframe for eligible costs. These parameters are available to new applicants and existing recipients.
Key new features for RRRF liquidity support:
- As of January 20, 2021, conditionally repayable loans for eligible applicants will increase from $40,000 to $60,000.
- Recipients who have already received RRRF conditionally repayable financial assistance may apply for a top-up to a maximum total amount of $60,000 (also conditionally repayable).
- Repayable RRRF funding may support fixed operating costs incurred during the pandemic, up to a maximum of $1 million.
- Organizations such as chambers of commerce, business sector associations and other economic development organizations that provide support to businesses are eligible to apply for the RRRF for non-repayable loans.
What features have not changed?
- 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 percent of eligible costs.
What is the RRRF?
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.
Recognizing the importance of supporting the region’s tourism sector, a minimum of 25 percent of all national RRRF funding is earmarked to assist local tourism businesses.
How much funding is available?
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.
Is this program right for me?
If you haven’t qualified for other measures or need additional support, then FedDev Ontario may be able to help. You can apply to the RRRF if you have either:
- 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.
Eligibility
1) Applicants
Eligible applicants | Ineligible applicants |
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That meet the following:
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2) Activities
Funding is targeted at providing liquidity support to eligible organizations. It supports fixed (or non-deferred) operating costs to maintain regular operations where revenues or cash flows have been affected by the COVID-19 pandemic.
3) Costs
Eligible costs | Ineligible costs |
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May include:
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*IMPORTANT NOTE ON COST CALCULATIONS: If you have received financial support from other Government of Canada COVID-19 relief measures, RRRF funding will only be assessed for eligible costs not covered or considered by these programs. The RRRF complements other measures and does not duplicate other supports. The Annex below provides more information on other programs that make up part of Canada’s COVID-19 Economic Response Plan. |
Priorities
RRRF is intended to support all of southern Ontario’s economic sectors, including those hardest hit by the COVID-19 pandemic. Priority consideration may be given to businesses and organizations operating in the tourism sector, or by underrepresented groups in the economy.
Consideration may also be given to organizations that can support Canada's COVID-19 recovery efforts through the delivery of RRRF funding or assistance.
Quick Reference Guide on RRRF Liquidity Assistance
- For businesses or organizations engaged in commercial activities, the loan is repayable (see the Funding for Liquidity Support section with repayment conditions below).
- For eligible organizations that offer support to businesses (e.g., chambers of commerce, business and sector associations, and other economic development organizations), funding will generally be in the form of a non-repayable contribution unless they are assessed to have sufficient capacity to repay.
- In all cases, the maximum amount will not exceed $1 million.
Funding for liquidity support
Eligible applicants may only apply for assistance under one of the two funding options (based on eligibility criteria and funding needs).
FedDev Ontario will determine the contribution amount based on the:
- Funding option selected (i.e., maximum contribution);
- Eligible operating costs (as per Eligible costs section);
- Extent to which other federal COVID-19 measures have been accessed;
- Ability to repay the contribution (applicable to businesses and organizations that are engaged in commercial activities); and
- Demonstrated need for additional funding when reviewed against funding already received from other sources to maintain regular operations (applicable to organizations providing support services to businesses).
Organizations that provide support to businesses that are deemed to be eligible will generally receive non-repayable contributions unless they are assessed to have sufficient capacity to repay.
NOTE: Eligible applicants that have received a CEBA loan will only be eligible to apply for Option 2.
Option 1 Funding of $60,000 or less Conditionally repayable contribution (interest-free loan) |
Option 2 Funding up to $1,000,000 Unconditionally repayable contribution (interest-free loan) |
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Loan amount |
RRRF loans will normally support six months (up to a maximum of 12 months) of eligible and supported fixed operating costs, up to a maximum of $60,000. The timeframe to consider costs is March 15, 2020, to March 31, 2021. |
RRRF loans will normally support six months (up to a maximum of 12 months) of eligible and supported fixed operating costs, up to a maximum of $1 million. Eligible costs are retroactive to March 15, 2020. |
Top-up |
Businesses that have received RRRF funding and can attest and demonstrate that they continue to face liquidity pressures and have not received duplicate support from other Government of Canada COVID-19 relief measures may be eligible for further financial support. If you received support under this option and subsequently apply for additional assistance, the terms of your forgiveness will change and are described below. |
Businesses that have received RRRF funding and can attest and demonstrate that they continue to face liquidity pressures and have not received duplicate support from other Government of Canada COVID-19 relief measures may be eligible for further financial support. |
Repayment conditions |
If you receive $40,000 or less: Repaying 75 percent of the loan amount, or up to $30,000, on or before December 31, 2022, will result in loan forgiveness of 25 percent (up to $10,000). If you received more than $40,000 and up to $60,000: The terms of your forgiveness will be subject to the following thresholds:
For clarity, the portion of forgiveness based on a rate of 25 percent and the portion of forgiveness based on a rate of 50 percent are blended into a single tranche of forgiveness, which is only available if all other amounts outstanding are repaid by December 31, 2022. For example, if $60,000 is received, no forgiveness is available unless $40,000 is repaid.
Repayment Schedule:
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Fully repayable:
Grace Period
Repayment Schedule: Scheduled payments to FedDev Ontario start on January 1, 2023. |
Agreement and disbursements |
If an Application for Funding is approved, a Contribution Agreement will be executed between the Applicant and FedDev Ontario. Approved contributions of $60,000 or less will be disbursed through a single advance payment following receipt of an executed (signed) Contribution Agreement. |
If an Application for Funding is approved, a Contribution Agreement will be executed between the Applicant and FedDev Ontario. Approved contributions greater than $100,000 will be disbursed through two advance payments:
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Application process
Applications for funding for liquidity support will be accepted on an ongoing basis, until the Fund is fully committed.
New: The deadline to submit an application for partially forgivable RRRF funding (Option 1) is March 31, 2021.
Refer to the Application Guide, in conjunction with these guidelines, for information and instructions on how to complete the RRRF Application for Funding. Please consult the FAQ for answers to common questions.
Current applications will be considered under the expanded program parameters and do not need to be resubmitted.
Application review
FedDev Ontario will review applications as they are received. Incomplete applications will not be assessed and will be considered ineligible for funding.
Applicants with incomplete applications are permitted to re-apply with completed applications including all required documentation.
Complete applications are those that include all prescribed documentation containing all information needed for FedDev Ontario to complete the review. Information should be accurate, verifiable, relevant and consistent. Complete applications will undergo a due diligence process where they are assessed against a number of factors.
Assessment criteria include, but are not limited to:
- Impact of COVID-19 pandemic on an organization’s operations;
- Availability of other financial supports (e.g., access to credit at a financial institution and other federal COVID-19 relief measures);
- Financial viability, including ability to repay the contribution;
- Economic benefits of RRRF support.
Reporting and disclosure
The recipient will be required to submit a Final Report that includes:
- An attestation that the full amount of the contribution was expended for eligible fixed operating costs;
- Narrative describing how the contribution received has mitigated the impacts of COVID-19 on the organization;
- Number of jobs maintained as a result of the contribution received;
- Confirmation that the organization is continuing its operations; and
- Other metrics as may be requested by FedDev Ontario.
The recipient must submit a copy of their financial statements within one hundred and eighty (180) calendar days of their fiscal year.
The names of recipients, the amount of funding approved and a brief description of the project are included in public records and disclosed on FedDev Ontario’s website in accordance with the Government of Canada’s proactive disclosure practices.
Other
FedDev Ontario reserves the right to modify these guidelines at any time without notice and may waive certain requirements on an exceptional basis.
ANNEX – Additional information on Government of Canada COVID-19 relief measures
Organizations are expected to have already applied to other Government of Canada COVID-19 relief measures, for which they are eligible, including but not limited to:
- Canada Emergency Business Account (CEBA). Please note this program was expanded on October 9, 2020;
- Business Credit Availability Program (BCAP) – Business Development Bank of Canada (BDC) Co-Lending and Export Development Corporation (EDC) Loan Guarantee programs;
- Canada Emergency Wage Subsidy (CEWS);
- The National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) Innovation Assistance Program (IAP);
- Canada Emergency Rent Subsidy (CERS) and/or the Canada Emergency Commercial Rent Assistance (CECRA);
- Highly Affected Sectors Credit Availability Program (HASCAP); and
- Other targeted and sector-specific COVID-19 programs (e.g., funding for Indigenous Entrepreneurs, Farm Credit Canada, and CFDC RRRF loans).
Please note:
- If you have received the Canada Emergency Wage Subsidy (CEWS) or the National Research Council Canada Industrial Research Assistance Program (NRC-IRAP) Innovation Assistance Program (IAP), you may still be eligible under the RRRF for financial support. However, costs for salaries and benefits that were supported by these programs may be excluded from consideration.
- If you have received the Canada Emergency Rent Subsidy (CERS), you may be eligible under the RRRF for financial support. However, costs covered by CERS (including but not limited to: rent, customary operating expenses, property and similar taxes, property insurance, interest on commercial mortgages, other eligible expenses) may be excluded from consideration.
- If you have received a Canada Emergency Business Account (CEBA) loan, the CEBA loan amount will be adjusted from the RRRF loan and you will not be eligible to have any portion of the RRRF loan forgiven.
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