Eastport Financial Group is a small local business just like many of our clients. Like our clients we live and are raising our families in Nova Scotia. We work in Nova Scotia, and we are "Nova Scotia Strong" just like you. We are open and working hard for our clients and the communities they live and work in.
Last week the government announced the RRRF (Regional Relief Recovery Fund). Simply put, it is the local provincial cousin of the CEBA $40k loans provided last month. This initiative was created to support small businesses through the impact of Covid 19 that have been struggling to get the other support programs available or that have applied and received funding and are still in need of more support. It will provide short term working capital (up to 6 months) so businesses can meet current obligations.
This is a "last step" initiative as you must have already tried to access the 75% Wage Subsidy program, the $40,000 CEBA loan and the rent relief program. The definition of a small business is loosely; less than 500 employees and sales less than $20 mil., and the business must have been operational on or before March 1, 2020. It is important to note that ACOA will administer this plan and on their website
https://www.canada.ca/en/atlantic-canada-opportunities.html they have made it clear that you can collect this support even if you have received the other programs mentioned above. You simply must have applied for them first. The maximum loan is $40k with no interest accrual until Jan 1, 2023 and no principle
payments until at least Jan 31, 2023. The maximum interest rate is 5% and there is no security required.
If 75% of the loan is repaid by December 31, 2022 then the remaining 25% is forgivable, if not, the
full loan is to be fully paid by December 31, 2025.
There are some restrictions on what the funds can be used towards. For example, they cannot be
used to buy equipment, pay off debts of clients or to refinance existing debt. You will need to
show documents detailing cash flow, aged payables, previous financials and credit score to attest
to your business’s need and the viability of your business after Covid 19. Your accountant should
have or be able to get all of these.
The plans are going to be administered and distributed by your local CBDC which you can find
here https://www.cbdc.ca/en. They will receive limited amounts from ACOA for distribution
based on the size of the CBDC in your community. So don't delay to apply and get your "hat in
Good luck neighbors and fellow community builders!