Federal Government
Refreshed on 2020-11-18
Type
Loan & Subsidy
What
The project should address only the immediate (one-time) financial pressures on cash flow (working capital or cash flow requirements) due to the COVID-19 pandemic for costs such as salaries and benefits, rent and utility costs incurred no earlier than March 15, 2020.
The company will also need to ensure that:
- Eligible expenses will be the subject of a detailed presentation based on a timetable for completion not exceeding 6 months from the date of the first eligible expense incurred
- The financial support requested must be consistent with other government measures:
- The need for assistance must be demonstrated taking into account the assistance received from the provincial government and municipalities.
- Company benefits included as eligible expenses cannot exceed twenty percent (20%) of total salaries
- Commissions on sales and bonuses are not eligible and must not be entered as project expenses
- Taxes (GST and QST) giving rise to a remittance or refund are not eligible expenditures for a project
Value
Business seeking financial assistance of $40,000 or less:
- The financial contribution is considered repayable, taking into account certain special conditions. If 75% of the contribution is repaid by December 31, 2022 (based on a pre-determined repayment schedule), the remaining 25% becomes non-repayable; otherwise, the entire contribution is considered repayable over a three-year period, starting January 1, 2023.
Businesses seeking over $40,000:
- The entire financial contribution is considered repayable over a five-year period (based on a pre-determined repayment schedule), starting January 1, 2023.
Eligibility
Businesses that are eligible to apply for the RRRF include for-profit enterprises, social economy cooperatives and NPOs, as well as self-employed workers with liquidity or working capital needs due to the COVID-19, requiring funding of $40,000 or less.
Apart from the enterprises that are already clients of PME MTL and have not already received financial assistance from CED, enterprises that do not correspond to the profiles listed above will be referred to the Agency. To find out more about the applications processed by CED, click here.
Priority will be given to businesses that have not benefited from other federal emergency measures. Businesses that have already benefited from such assistance, including the Canada Emergency Business Account, will be required to demonstrate their additional liquidity needs.
In order to benefit from this fund, the company must:
- Have its head office or its place of business in the Montréal agglomeration
- Demonstrate a post-COVID-19 outlook for sustainability
- Not have already received a loan from the RRRF administered by PME MTL
- Demonstrate additional liquidity needs if it has already received other federal assistance related to COVID-19, such as the Canada Emergency Business Account
Authorized Costs
The project should address only the immediate (one-time) financial pressures on cash flow (working capital or cash flow requirements) due to the COVID-19 pandemic for costs such as salaries and benefits, rent and utility costs incurred no earlier than March 15, 2020.
The company will also need to ensure that:
- Eligible expenses will be the subject of a detailed presentation based on a timetable for completion not exceeding 6 months from the date of the first eligible expense incurred
- The financial support requested must be consistent with other government measures:
- The need for assistance must be demonstrated taking into account the assistance received from the provincial government and municipalities.
- Company benefits included as eligible expenses cannot exceed twenty percent (20%) of total salaries
- Commissions on sales and bonuses are not eligible and must not be entered as project expenses
- Taxes (GST and QST) giving rise to a remittance or refund are not eligible expenditures for a project
Required Documents
- The completed electronic form
- A 6-month cash flow budget
- For incorporated companies or NPOs:
- 2018 and 2019 financial statements (balance sheet and income statements) as well as the most recent interim financial statements
- For sole proprietorships:
- Income tax return for 2018 or 2019
How to Apply
RRRF - FARR EN