An additional $144.3 million in funding available through CFDCs to help local small businesses weather the COVID-19 pandemic.
On behalf of the Community Futures Network of Canada (CFNC) and the 268 Community Futures Organizations located in rural areas and territories across Canada, we welcome Minister Joly’s announcement on the additional funding for the Regional Relief and Recovery Fund (RRRF) of which $144.3M dollars have been allocated to the Community Futures Network.
This funding is in addition to the $287M dollars that was awarded to the CFNC in May and is intended for rural businesses that require support to recover from the COVID-19 pandemic.
The Community Futures Program has been serving rural communities for over 30 years. Each office operates as an individual non-profit corporation, with its own volunteer board of directors and its own portfolio of lending products and services. This means that the local board takes into consideration additional factors that a traditional bank may not, and it means the application turnaround can be much faster and efficient.The Community Futures Network looks forward to working with the Regional Development Agencies to deliver the funding to rural businesses as quickly and efficiently as possible.
Funding available through Grand Erie Business Centre
In order to provide targeted assistance to the small towns and communities we serve, we will focus on assisting “main street” businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to our communities, with loans up to $40,000.
- Eligible applicants must also meet the following criteria:
- established prior to March 1, 2020;
- impacted adversely due to the COVID-19 pandemic;
- viable and not experiencing financial pressures prior to March 1, 2020;
- have attempted to access other federal relief supports and were ineligible, or require funding for expenses in excess of support already received, with priority given to applicants who were ineligible or rejected from other federal relief supports; and
- have not or will not apply or accept other Government of Canada equivalent support
- The lending terms for the loans are as follows:
- Zero percent interest until December 31, 2022.
- No principal payments until December 31, 2022.
- Principal repayments can be made voluntarily at any time.
- 25%, up to a maximum of $10,000, in loan forgiveness is available, provided the outstanding balance is repaid 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 five percent annual interest. Effective January 1, 2023.
- The full balance must be repaid no later than December 31, 2025.
Applications can be submitted for:
- Loans of up to $40,000 to help address working capital needs.