ATHABASCA - Small and medium-sized businesses hit hard by the COVID-19 pandemic and subsequent lockdown are encouraged to look at some of the loans being offered by the federal government.
In Western Canada, the Government of Canada’s Regional Relief and Recovery Fund (RRRF) is being administered through Community Futures offices, where a portion of the $962 million fund will be distributed to local businesses that apply for up to $40,000.
Kelly Harris-Martin of Community Futures Tawatinaw was at the Town of Athabasca’s May 19 council meeting, conducted via Zoom, to spread the word about the fund and provide some information to the mayor and councillors that could save some businesses that might consider closing their doors otherwise.
The decisions about local businesses will be made by local people, Harris-Martin told council, pointing out that non-profits were also eligible to apply.
Those seeking more than $40,000 are asked to apply for the funding through Western Economic Diversification Canada, otherwise, stopping by your local Community Futures office will put you well on your way.
The RRRF was created to give those who have lost a significant amount of business because of the coronavirus and the regulations that followed, a chance to get back into the black.
Repayment terms include no interest accrual or principal payments through December 31, 2022 and if 75 per cent of the loan is repaid by December 31, 2022, the remainder of the loan is forgiven. Blended principal and interest payments beginning January 1, 2023 and loans must be repaid by December 31, 2025, and there are no prepayment penalties.
Mayor Colleen Powell said the fund would be very helpful for many businesses out there, and the fact that it is distributed locally, by local people, is an additional perk.
“Let’s hope this money gets out there,” she said.
Council accepted Harris-Martin’s presentation for information, but said they would pass the information along to whoever may need it.
Applicants are able to use the money for payments on existing equipment and machinery; salaries and benefits (will only be considered for support if the business has not received support under the Canada Emergency Wage Subsidy (CEWS); property taxes; utilities; bank charges and interest payments; office supplies; vehicle operating expenses; professional fees; monthly insurance payments; rent (applicants are expected to pursue with their landlord access to the Canada Emergency Commercial Rent Assistance (CECRA) for small businesses); and other applicable fixed operating costs.
Applicants must be located in non-metropolitan regions in Western Canada and must attest they have not received duplicative supports through other federal or provincial government COVID-19 support programming such as the Canada Emergency Business Account.
The business must have been viable and not experiencing any liquidity or other financial difficulties as of March 1, 2020, and must demonstrate a material adverse effect on business operations on or after March 1, 2020, as a result of the COVID-19 pandemic.
Businesses must also have been established before March 1, 2020, and be classified as a sole proprietorship, partnership (except professional services), corporation, social enterprise, or other similar organization.
