COVID-19: Regional Relief and Recovery Fund (RRRF)
On May 13, the Government of Canada launched the Regional Relief and Recovery Fund (RRRF), which comes with an envelope of $211 million, an investment that practically doubles the total envelope available for the regions of Québec for the next 12 months. This assistance program is less known than the others and for this reason, the FNQLEDC team decided to analyze it to have a better understanding of it’s different criterias and to determine if Indigenous organizations and businesses are eligible.
First of all, good news, Indigenous organizations and businesses can access the RRRF. It is possible to submit an application through Canada Economic Development for Quebec Regions (CED).
A two-part program
The fund is divided into two parts. The first, with a $140 million fund, is designed to support small and medium-sized businesses that do not qualify for other assistance programs and are facing liquidity problems. The second component has an envelope of $71 million to provide assistance to businesses and organizations by giving them access to capital in rural communities served by the Community Futures Development Corporations (CFDCs) and Business Development Centres (BDCs).
The nuance is that it is not because a business takes advantage of other programs such as the Canada Emergency Business Account, the Canada Emergency Wage Subsidy or other, that it is automatically ineligible for the RRRF. On the other hand, the funds in the RRRF are intended to help businesses specifically dealing with working capital problems. Money received cannot be used for any other purpose.
Two eligibility profiles
Here are two profiles that can help you assess your eligibility:
- Businesses with sales of $250,000 or more in the following sectors:
- Manufacturing sector;
- Value-added services (distinctive know-how, innovative service offer – e.g. digital content production, technology, artificial intelligence, contribution to the technological transition or the green economy).
- Start-up companies in the manufacturing and value-added services sectors;
- Tourism, cultural or sports and cultural event businesses requiring funding of more than $40,000;
- Tourist, cultural or sports and cultural event NPOs;
- NPOs with an economic vocation that operate in the above sectors or that support businesses.
- Businesses with sales of less than $250,000 in the manufacturing and value-added services sectors;
- Retail businesses, local services, health and professional services (e.g. restaurant, bakery, convenience store, hair salon, funeral home, cleaner, car dealership, big-box store, accounting or legal services, dentist, real estate services);
- Start-up businesses other than in the manufacturing and value-added services sectors;
- Cultural tourism businesses or sports and cultural events requiring financing of $40,000 or less;
- Agriculture and fisheries (gathering and harvesting);
- Self-employed workers and sole proprietorships (all sectors);
- Social economy enterprises (all sectors);
- Artisanal production enterprises and local products.
For more information, please contact the CED regional office in your region.
Finally, you can consult the frequently asked questions available on the CED Web site, where you will find answers to the most frequently asked questions.
Note: On June 8, 2020, additional funding of $50 million was announced for businesses in the Montréal region under this program. For more information
For other articles concerning the government assistance programs announced as part of the COVID-19 crisis, we invite you to consult the COVID-19 section of our blog.