Regional Relief and Recovery Fund - Frequently asked questions

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Changes to repayment terms for CEBA-equivalent RRRF funding:

On September 14, 2023, the Government of Canada announced changes to the CEBA program and CEBA-equivalent lending under the Regional Relief and Recovery Fund.

RRRF funding Updated

  1. What are the forgiveness terms for RRRF loans?
  2. Does the funding have to be repaid? What are the terms?

CEBA Loan Extension Announcement New

  1. How does the CEBA announcement impact RRRF loans?
  2. I received a RRRF loan through my local CFDC; how does the CEBA announcement impact me?
  3. Are all RRRF projects eligible for this repayment extension?
  4. What is the revised repayment deadline?
  5. Can I apply for refinancing of the RRRF contribution?
  6. My company received loans under both CEBA and RRRF; does this announcement apply to both loans?
  7. Do I have to accept the extension?
  8. I have received funding under other FedDev Ontario programs; does this announcement apply to those programs?

RRRF recipients

  1. What are the reporting requirements for my contribution?
  2. Are there any tax implications for my business?

RRRF funding

1) What are the forgiveness terms for RRRF loans?

The following forgiveness terms apply to all RRRF loans (original loan and expansion loan) with a partially forgivable funding component. In all examples, if the outstanding principal, other than the amount of potential loan forgiveness, is repaid by January 18, 2024, the remaining principal amount will be forgiven, provided that no default under the loan has occurred.

If you receive $40,000 or less:

Repaying 75 percent of the loan amount, or up to $30,000, on or before January 18, 2024, will result in loan forgiveness of 25 percent (up to $10,000).

If you received more than $40,000 and up to $60,000:

If you received more than $40,000 and up to $60,000, or if you received a $40,000 loan and subsequently received up to $20,000 in additional funding through the RRRF expansion, 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 January 18, 2024. For example, if $60,000 is received, no forgiveness is available unless $40,000 is repaid.

Example 1 Example 2 Example 3 Example 4
Maximum Amount Borrowed: $40,000 Maximum Amount Borrowed: $60,000 Maximum Amount Borrowed: $50,000 Maximum Amount Borrowed: $60,000
Amount Repaid By January 18, 2024: $30,000 Amount Repaid By January 18, 2024: $40,000 Amount Repaid By January 18, 2024: $35,000

Amount Repaid By January 18, 2024: $20,000

Available Forgiveness: $10,000 ($40,000 x 25%) Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%) Available Forgiveness: $15,000 ($40,000 x 25% + $10,000 x 50%)

Available Forgiveness: $0

The outstanding balance will be converted to a fixed repayment schedule, beginning February 2024 with final payment due December 31, 2026.

2) Does the funding have to be repaid? What are the terms?

For businesses and organizations (including social enterprises) that are engaged in commercial activities as a significant portion of operations, contributions are interest-free and repayable. See "Repayment Terms" below.

For organizations that provide support to businesses, financial assistance will generally be in the form of non-repayable contributions unless they are assessed to have sufficient repayment capacity from commercial activities.

Repayment Terms:

For conditionally repayable contributions up to $60,000, no payments are required until January 18, 2024, but the recipient can opt to make payments any time before this date.

  • If the non-forgivable portions of the RRRF loans (75 percent of the first $40,000 and 50 percent of the subsequent $20,000) are not repaid by January 18, 2024, the balance owing will be converted to an additional three-year repayment term, with final payment due on December 31, 2026, and no forgivable portion.

Please review the program guidelines for more information.


CEBA Loan Extension Announcement

3) How does the CEBA announcement impact RRRF loans?

As announced by the Government of Canada on September 14, 2023, changes to CEBA repayment deadlines also apply to CEBA-equivalent lending provided through RRRF. FedDev Ontario will contact companies affected by this announcement directly regarding their loans.

4) I received a RRRF loan through my local CFDC; how does the CEBA announcement impact me?

Changes announced to the CEBA repayment deadlines apply to CEBA-equivalent lending delivered through CFDCs. Please contact your local CFDC for more details.

5) Are all RRRF projects eligible for this repayment extension?

No. The announcement applies only to companies with RRRF loans in good standing that are eligible for partial loan forgiveness. This funding option was available to eligible companies that met two key criteria: (1) did not also receive CEBA funding and, (2) received RRRF funding of $60,000 or less. If your company did not qualify for partial loan forgiveness on your RRRF loan, this announcement does not apply to you. If you are unsure of your repayment terms, please refer to your RRRF Contribution Agreement or contact us at rrrfmonitoring-farrsuivideprojet@feddevontario.gc.ca.

6) What is the revised repayment deadline?

The original repayment deadline to qualify for partial loan forgiveness had been extended to December 31, 2023, and is now being further extended to January 18, 2024. If repayment of the non-forgivable portion of the loan is not received by January 18, 2024, the full balance of the RRRF loan will be automatically converted to a fixed repayment schedule until December 31, 2026. A revised repayment schedule will be issued to you.

7) Can I apply for refinancing of the RRRF contribution?

Companies can seek refinancing through any financial institution or private lending sources. Refinancing is not available through FedDev Ontario. If your company has not heard back on the status of its refinancing application by January 18, 2024, the repayment deadline to qualify for partial loan forgiveness on the RRRF loan is extended until March 28, 2024.

8) My company received loans under both CEBA and RRRF; does this announcement apply to both loans?

No. If your company accessed both RRRF and CEBA, this announcement does not impact your current RRRF loan repayment terms. If your company received a CEBA loan through a financial institution, you are eligible for a portion of loan forgiveness on the CEBA loan amount and are not eligible to have any portion of the RRRF loan forgiven.

9) Do I have to accept the extension?

No. If your company is eligible and your account is in good standing, you can pay at any time before the January 18, 2024, deadline to ensure you benefit from the partial loan forgiveness.

10) I have received funding under other FedDev Ontario programs; does this announcement apply to those programs?

This announcement only applies to companies who remain eligible for partial loan forgiveness on their RRRF loans. Repayment terms on any other FedDev Ontario projects your company may have are not impacted by this announcement.

RRRF recipients

11) What are the reporting requirements for my contribution?

Organizations 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 end. Financial statements should be emailed to the Regional Relief and Recovery Fund monitoring inbox at fdo.rrrfmonitoring-farrsuivideprojet.fdo@canada.ca.

12) Are there any tax implications for my business?

Financial assistance from government programs may have tax implications for your business. It is recommended that advice be obtained from a qualified tax professional.