$39.4 million in funding available through CFDCs, of which the Orillia Area CDC
is one, to help local small businesses weather the COVID-19 pandemic.
The Regional Relief and Recovery Fund (RRRF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic.
In southern Ontario, $252.4 million is available, through two separate application streams, as follows:
- Apply directly to FedDev Ontario: $213 million for SMEs facing financial pressure; or
- Apply to your local CFDC (i.e. Orillia Area CDC): $39.4 million to provide rural businesses with access to capital and technical support
The Orillia Area Community Development Corp. (CDC) is a federally supported not-for-profit Community Futures Development Corporation with a volunteer Board of Directors and professional staff whose purpose is to enrich the local economy through coaching, training and financing businesses, and fostering community economic development projects. The CDC has been supporting businesses in the community for over 35 years.
Funding available through the Orillia Area CDC
The RRRF fund is intended to support businesses who have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses that have not been supported, with priority given to applicants who were ineligible or rejected from other federal relief supports. Details of the program are as follows:
- Maximum assistance under RRRF offered through the Community Futures program is $40,000
- 0% interest rate and no principal payments until December 31, 2022
- Principal repayments can be voluntarily made at any time
- 25% (not to exceed $10,000) of any loan can be forgiven provided the recipient has paid 75% of the original loan amount prior to December 31, 2022
- If the recipient is unable to repay the loan by December 31, 2022, the loan will be converted to a three-year term loan with an interest rate of 5%, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025
Eligible applicants must meet the following criteria:
- established prior to March 1, 2020;
- impacted adversely by the COVID-19 pandemic;
- viable and not experiencing other financial difficulties prior to March 1, 2020;
- have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses that have not been supported, with priority given to applicants who were ineligible or rejected from other federal relief supports