In order to provide targeted assistance to the small towns and communities they serve, CFDCs are helping a range of businesses, such as retail shops, restaurants, corner stores, and businesses of strategic importance to their communities, with loans up to $40,000. Not-for-profit (NFP) organizations that provide support services to SMEs as well as those engaging in commercial activities will be eligible for liquidity support.
Type of loan and terms
Maximum assistance will be $40,000
0% interest and no principal payments until December 31, 2023
Principal repayments can be voluntarily made at any time
25% not to exceed $10,000 can be forgiven provided 75% of the original loan is paid before December 31, 2023
If unable to repay the loan by December 31, 2022, the loan will be automatically converted to a three-year term loan with interest rates up to 5%, effective January 1, 2023.
No payments are required until December 31, 2023, but the Client can opt to make payments anytime between January 1, 2021, and December 31, 2023.
The full balance must be repaid no later than December 31, 2026
Eligible Costs for the purposes of the RRRF include those that will help stabilize organizations and mitigate COVID-19 impacts, including:
(a) rent, salaries, and benefits;
(d) cleaning supplies and additional safety measures;
(e) bank interest/charges and loan repayment (interest);
(f) professional fees;
(g) insurances; and
(h) other eligible expenses associated with retooling, rethinking workflows
Eligible CFDC applicants must also 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.