RRRF Application Form:
REGIONAL RELIEF AND RECOVERY FUND
Patricia Area Community Endeavours Inc. (PACE) is pleased to offer a new loan product to businesses impacted by COVID-19. Applications will be accepted starting May 22nd. The two streams of the Regional Relief and Recovery Fund (RRRF) is being administered by FedNor and the local Community Futures offices, like PACE. To access the FedNor stream, contact Brent Lundy. To access the PACE stream contact Noreen Cox.
To be eligible for the PACE stream of RRRF business will need to have been viable and in business prior to March 1, 2020. They will need to demonstrate that they have been impacted by COVID-19 but will not have to meet any payroll or revenue loss thresholds. Businesses will need to have fewer than 500 employees, annual sales revenue of less than $20 million, and provide goods and services for the market economy. Businesses will also need to have attempted to access other COVID-19 relief measures like CEBA, the wage subsidy, AFI, etc.
The RRRF loans will be to a maximum of $40,000 and will include the following terms:
- 0% interest until December 31, 2022.
- No principal payments until December 31, 2022.
- Principal repayments can be voluntarily made at any time.
- 25% up to a maximum of $10,000 in loan forgiveness is available, provided the outstanding balance is paid back by December 31, 2022.
- If any part of the balance is not paid by December 31, 2022, the remaining balance will be converted to a term loan at up to 5% annual interest. Effective January 1, 2023.
- The full balance must be repaid no later than December 31, 2025.
- No security will be required.
To apply, businesses will need to fill out an application, provide copies of their 2019 financial statements or income and balance statements, and provide cash flows and projections. Businesses will be able to apply for funds to cover expenses retroactive to March 15th. If businesses need more than $40,000 in funding PACE has other loan products available that can help.
What should you do to protect your business from COVID-19?
- Sick employees, or those with sick family members, should stay home until they are fully recovered
- Consider the implications of COVID-19 for employees who are vulnerable or who have vulnerable family members
- If possible, consider having those employees that can work from home
- Limit face-to-face interactions and work related travel
- Have employees practice good hand hygiene
- Clean more frequently, especially commonly touched items (doorknobs, light switches, bathrooms, etc.)
- Cross train employees on business critical duties in the event an employee is away for an extended period of time
If you are looking for more resources, check out this Government of Canada page or the COVID-19 PANDEMIC PREPAREDNESS TOOLKIT FOR ONTARIO BUSINESSES from the Ontario Chamber of Commerce
- The Government has a wage subsidy for employers. Visit their FAQ to find out about eligibility and how to apply https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html
What can PACE do to help your business?
- We can offer business counselling to help you decide what programs you should apply to or help developing cash projections and business plans.
- We can help if you are experiencing cash flow issues.
- We are able to loan you funds at 0% until September 2020, after which the interest rate will be prime.
- Principal repayments can be deferred during the pandemic.
- We know business owners don’t want to go into debt, but if you need help PACE can work with you to meet the needs of your business.
Most importantly, be flexible and adjust as new information is released:
If there is a local outbreak of the illness or community spread or
Any releases from the Northwestern Health Unit, your local municipality, the Province, or the Federal government adjust your plan