FAQ - Regional Relief and Recovery Fund

Below are some frequently asked questions about the Regional Relief and Recovery Fund.

Q: What is the RRRF

A: The Regional Relief and Recovery Fund (RRRF) is an initiative launched by the Government of Canada to support SMBs and NPOs that are affected by the economic impacts of COVID-19 but that do not have access to all the Government of Canada assistance they need. The RRRF provides them with emergency financial support if they need additional working capital to remain operational.

The RRRF is a nationwide initiative worth nearly $1 billion, including $211 million for Québec. It is implemented across Canada by the six regional development agencies, including CED in Québec. It has two components:

• $140 million in financial support for vulnerable SMBs facing liquidity problems that are not eligible for other measures already in place.
• $71 million to support SMEs and NPOs by giving them access to essential capital and technical assistance in rural communities served by the Sociétés d'aide au développement des collectivités (SADC) and Centres d’aides aux entreprises (CAE). PME MTL is responsible for managing applications corresponding to this profile, for businesses located on the Island of Montréal.

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Q: Who is the RRRF for?

A: The RRRF targets SMBs and NPOs that are affected by the economic impacts of COVID-19 but that do not have access to all the Government of Canada assistance they need. See details regarding eligibility requirements.

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Q: What are the eligibility criteria for this initiative?

A: The eligibility criteria specific to Montréal businesses are as follow:

• Have a place of business in the Montréal agglomeration with a head office located in Québec
• Demonstrate an outlook for post-COVID-19 sustainability
• Not have already benefited from the RRRF managed by PME MTL
• Demonstrate a minimum of $60,000 in eligible expenses
• Demonstrate additional liquidity needs if the company has already received other federal assistance related to COVID-19, such as the Canada Emergency Business Account.

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Q: Is financial support to SMBs under the RRRF repayable or non-repayable?

A: The support is repayable. Financial assistance will be provided in the form of an interest-free loan to companies whose projects are declared eligible. The maximum amount of the financial assistance is $60,000.

The financial assistance will also be subject to the following conditions:

• Automatic six (6)-month moratorium on capital, which may be extended to eighteen (18) months on an exceptional basis after analysis;
• Beyond the moratorium period, the amortization period will be thirty-six (36) months, which may be extended to a maximum of forty-eight (48) months after analysis.

The financial contribution is subject to the following specifications:

• For the first $40,000, if 75% of the loan is reimbursed within twenty-four (24) months following the date of disbursement, 25% of the loan will be forgiven, up to a maximum of $10,000;
• For the amount exceeding $40,000, if 50% of this amount is reimbursed within twenty-four (24) months following the date of disbursement, 50% of this portion of the loan will be forgiven, up to a maximum of $10,000.

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Q: If I am a self-employed person or sole proprietorship affected by the COVID-19 pandemic, am I eligible for the RRRF?

A: Yes, the RRRF is accessible to for-profit enterprises, cooperatives and social economy NPOs as well as self-employed workers with working capital or cash flow needs due to the COVID-19 pandemic, that match one of the following profiles:

• Manufacturing and value-added service companies with sales less than $250,000
• Retail businesses, community services, health and professional services (e.g. restaurant, bakery, convenience store, hair salon, funeral home, dry cleaner, car dealership, big-box store, accounting or legal services, dentist, real estate services, etc.)
• Start-up companies other than in the manufacturing and value-added services sectors
• Cultural tourism businesses or sporting and cultural events requiring funding of $60,000 or less
• Agriculture and fisheries enterprises (harvesting)
• Social economy enterprises (all sectors)
• Craft production and local products companies

Application Process

Q: When and how do I apply for the RRRF?

A: Applications are open now. You can view the eligibility criteria and apply online.

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Q: How will applications for assistance be analyzed?

A: Applications are processed on an ongoing basis until funds are exhausted. As funds are limited, companies wishing to take advantage of this emergency measure are encouraged to apply early.

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Q: Can a client make more than one application?

A: The same client may apply for assistance only once for the duration of the initiative.

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Q: Who can I contact if I have additional questions about the RRRF?

A: Please contact you PME MTL service center for additional questions. Enter your company's postal code here to find your PME MTL service centre.