NEWS SOURCE: Women’s Enterprise Centre
The Government of Canada, through Western Economic Diversification Canada, is providing loans of up to $40,000 for eligible women-run businesses to help businesses cope with financial hardship and recovery from economic disruption resulting from COVID-19.
Women’s Enterprise Centre is pleased to provide access to this Regional Relief and Recovery Fund (RRRF) to women entrepreneurs in BC. If you think your business requires additional financing to recover this could be a good option for you.
This option is available for sole proprietorships, partnerships and corporations.
WHO IS THIS FUND FOR?
- Businesses must demonstrate they were financially healthy prior to COVID-19;
- Businesses must attest that they have applied for and either been declined or did not qualify for other government COVID-19 relief funds;
- Businesses must demonstrate how they have been negatively affected by COVID -19.
- Maximum assistance is $40,000;
- 0% interest and no principal payments until December 31, 2022;
- Principal repayments can be voluntarily made at any time;
- 25% (not to exceed $10,000) can be forgiven, provided 75% of the original loan amount is paid prior to December 31, 2022;
- If loan is not repaid by December 31, 2022, the loan will be converted to a three-year term loan with interest rates up to 5%, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025;
- Loan pooling is prohibited;
- Use of funds for repayment of existing loan debt, including but not limited to a WEC loan, is prohibited.
- Eligible applicants include sole proprietors, partnerships and corporations.
- Eligible applicants must also meet the following criteria which will be captured in the application form:
- Business was established prior to March 1, 2020;
- Business was impacted adversely due to the COVID-19 pandemic;
- Business was viable and not experiencing financial pressures prior to March 1, 2020;
- Business was ineligible, rejected and/or not receiving other federal relief supports, such as the Canada Emergency Business Account (CEBA) for the same expenditure
- If you are seeking loans over $40,000 you may be eligible to receive RRRF assistance directly from Western Economic Diversification. However, you cannot receive RRRF assistance from both Women’s Enterprise Centre and directly through Western Economic Diversification.
ELIGIBLE COSTS FOR SUPPORT
Costs such as rent, salaries and benefits will only be considered if the applicant is rejected and/or not already receiving assistance for these costs from other federal and provincial funding measures:
- salaries, and benefits (will only be considered if not eligible or declined from the Canada Emergency Wage Subsidy);
- property taxes;
- rent (applicants are expected to pursue with their landlord access to the Canadian Emergency Commercial Rent Assistance (CECRA) for small businesses);
- cleaning supplies and additional safety measures;
- bank interest/charges;
- office supplies and vehicle operating expenses;
- lease payments for existing equipment and machinery;
- professional fees;
- insurances; and
- other eligible expenses associated with retooling, rethinking workflows, automation, robotics, developing new markets, etc.
The use of funds for the pre-payment of existing loan debt, outside of regularly scheduled debt payments, is prohibited.
HOW TO APPLY
To apply, you will need to provide:
- A completed application form.
- Your income statement for the last 2 years (or, if business has been operational for less than 2 years, please submit financials for the time period the business has been operational).
- Your balance sheet prior to, but as close to, March 1, 2020 as possible.
refers: Women’s Enterprise Centre