Regional Relief and Recovery Fund - Program guidelines

• A Canadian or provincially-incorporated business, co-operative, partnership or an Indigenous-owned business with 1 to 499 full-time equivalent employees; or
• 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
• Chambers of commerce, business or sector associations and other economic development organizations that provide support to businesses.

That meet the following:

• Located in southern Ontario;
• 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;
• Were operational prior to March 15, 2020;
• Are financially viable;
• Plan to continue to operate or resume operations; and
• Have an active business chequing/operating account.

• Unincorporated businesses, including sole proprietors;
• Government organizations or bodies, or entities owned by a government organization or body;
• Unions, charitable, religious or fraternal organizations or entities owned by such an organization;
• Not-for-profit organizations (except those that provide support to businesses or engage in commercial activities);
• Entities that are structured as a holding company; and
• Entities owned by individuals holding political office.

• Capital lease payments for existing equipment and machinery;
• Salaries and benefits*(only if not eligible or supported by other available federal COVID-19 relief measures);
• Property taxes*;
• Utilities* ;
• Bank charges and interest payments;
• Professional fees;
• Monthly insurance payments;
• Rent*;
• Cleaning expenses / personal protective equipment / safety measures; and
• One-time stabilization expenditures (including sanitary, distancing measures and/or one-off adaptation costs related to operating in the context of COVID-19).

• Any costs deemed not reasonable and/or not directly related to a business’ fixed operational expenses;
• Monthly mortgage and loan payments;
• New capital expenditures;
• Refinancing of an existing debt, including prepayment/refinancing of higher interest loans or debts such as those that make up part of Canada’s COVID-19 Economic Response Plan;
• Costs of amortization and goodwill;
• Dividends to shareholders;
• Acquisition of land and buildings; and
• Costs incurred outside of Canada.

*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.

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 September 30, 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.

The timeframe to consider costs is March 15, 2020, to September 30, 2021.

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.

If you receive $40,000 or less:

Repaying 75 percent of the loan amount, or up to $30,000, on or before December 31, 2023 (extended for one year from 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:

• 25 percent on the first $40,000; plus
• 50 percent on amounts above $40,000 and up to $60,000.

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, 2023. For example, if $60,000 is received, no forgiveness is available unless $40,000 is repaid.

• (Examples of the forgiveness calculation are included in the FAQ)

Repayment Schedule:

• No payments are required until January 1, 2024, but applicants can opt to make payments any time until December 31, 2023.
• If the non-forgivable portions of the RRRF loans (75 percent of the first $40,000 and 50 percent of the subsequent amount up to $20,000) are not repaid by December 31, 2023, the balance owing will be converted to an additional two-year contribution (fixed repayment schedule), beginning January 1, 2024, with no forgivable portion.
• The contribution must be fully repaid by December 31, 2025.

Fully repayable:

• 100 percent of the contribution to be repaid.

Grace Period

• No scheduled monthly payments required until January 1, 2023.

Repayment Schedule:

Scheduled payments to FedDev Ontario start on January 1, 2023.

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:

1. An advance payment for 80 percent of the contribution amount will be disbursed following receipt of an executed (signed) Contribution Agreement.
2. An advance payment for the remaining 20 percent of the contribution amount will be disbursed upon submission of an attestation confirming that the initial 80 percent payment has been expended, the remaining 20 percent is required, and the organization remains operational.