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Small business owners impacted by the COVID-19 pandemic can now apply for loans up to $40,000 through the Regional Relief and Recovery Fund (RRRF) at Community Futures West Yellowhead (CFWY).
Funding through the program supports businesses not approved for support through the Canada Emergency Business Account (CEBA) or the Emergency Loan Program delivered through Aboriginal Financial Institutions.
“The longer that COVID-19 goes on, the more financial support is going to be needed for businesses in order to retain them in our community and to keep them open,” said Nancy Robbins, general manager of CFWY.
The loan includes zero per cent interest and no principal payments until Dec. 31, 2022.
Principal repayments can be voluntarily made at any time without penalty and 25 per cent, up to a maximum of $10,000 in loan forgiveness is available, if the outstanding balance is paid back by Dec. 31, 2022.
Any unpaid balance beyond that will be converted to a term loan effective Jan. 1, 2023 and the full balance must be repaid before Dec. 31, 2025.
“It’s first come, first served and if they’re eligible for the loan they will most likely receive the funds,” Robbins added.
Funds from this loan can only be used by the borrower to pay non-deferrable operating expenses of the borrower including payroll, rent, utilities, insurance, property tax and regularly scheduled debt service.
Funds from this loan cannot be used to pay expenses supported through the Canada Emergency Wage Subsidy or Canada Emergency Commercial Rent Assistance.
CFWY’s website states that eligible SMEs are defined as having less than 500 employees, less than $20M in annual sales revenue, and produce goods and services for the market economy.
For more information on the program, and how to apply, head to westyellowhead.albertacf.com.