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Financing - CAF loan

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The COVID-19 ASSISTANCE FUND (CAF) provides liquidity support to businesses and not-for-profit organizations affected by the economic impacts of COVID-19, that are unable to access other federal relief measures, or require additional support. Important to mention that if you received the maximum ($60 000) from the Regional Relief and Recovery fund you are not eligible for this program

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 $60,000. This program provides interest-free loans to small businesses and not-for-profit organizations experiencing temporary financial hardship to help cover operating costs.

                              

GUIDELINES

Eligibility criteria

 
The business:
  • Must be registered or incorporated prior to March 1st 2020;
  • Must be located in Prescott-Russell;
  • Must have been impacted adversely due to COVID-19 pandemic;
  • Must be viable and not experiencing financial pressures or other financial difficulties prior to March 1st 2020;
  • Must have attempted to access other federal relief supports and were ineligible, rejected, or require funding for expenses in excess of support already received;
  • Must have not or will not apply or accept other Government of Canada or equivalent support. 

Applicants who already receive the maximum amount from the Regional Relief and Recovery Fund (RRRF) will not be eligible to the COVID-19 Assistance Fund (CAF).

Eligible costs:

 
  • Equipment and machinery rental fees;
  • Salaries and benefits;
  • Property taxes;
  • Utilities;
  • Cleaning supplies; additional security measures;
  • Bank/interest charges and loan reimbursement (interests only);
  • Professional fees;
  • Business commercial insurances;
  • Rent realted to the business;
  • Other eligible expenses associated with re-tooling, redesigning workflows, automation, robotics, developing new markets, etc.

Non eligible costs:
 
  • Any costs deemed not reasonable and/or not directly related to a business’ fixed operational expenses;
  • Monthly mortgage and loan payments;
  • New capital expenditures;
  • Refinancing of an existing debt;
  • Costs of amortization and goodwill;
  • Acquisition of land and buildings.
Parameters:
Maximum of $60 000
 
Maximum loan of $40,000:
 
  • 0% interest and no principal payments until December 31st, 2022;
  • Principal repayments can be voluntary and made at any time;
  • 25% (not exceed $10,000) of any loan can be forgiven provided the recipient had paid 75% of the original loan amount prior to December 31st, 2022;
If there still is a balance to pay on January 1, 2023, you can set up a 36 month repayment term (principal and interest) at a 5% interest rate.   The loan must be repaid by December 31, 2025.

Additinal loan of $20,000:

Businesses that recevied the initial loan of $40 000 as part of this program can apply for an additional $20 000.

 
  • 0% interest and no principal payments until December 31st, 2022;
  • Principal repayments can be voluntarily made at any time;
  • 50% (not exceed $10,000) of any additional loan of $20 000 can be forgiven provided the recipient had paid 75% of the original loan amount AND 50% of the additionnal loan prior to December 31st, 2022;
If there still is a balance to pay on January 1, 2023, you can set up a 36 month repayment term (principal and interest) at a 5% interest rate.   The loan must be repaid by December 31, 2025.

Example:
To benefit from the non refundable contrubtion:

Initial loan:              $40 000 (75% = $30 000)
Additionnal loan:    $20 000 (50% = $10 000)
Total                         $60 000


If 75% of the initial loan ($30 000)  AND 50% of the additionnal loan ($10 000) is paid before December 31, 2022, the balance, up to and not exceeding $20 000, can be forgiven.

 
APPLICATION GUIDE

The Prescott-Russell COVIS ASSISTANCE FUND (CAF) provides financial contributions (interest-free loans) to help support fixed operating costs of SMEs, where business revenues have been affected by the COVID-19 pandemic.

This Application Guide is designed to help the applicant with advice and instructions on the questions and documents required to be submitted with the application.  


The application

 
  1. Complete all the mandatory fields of each section.
  2. Use the best available information. 
  3. Be sure to carefully read and understand the questions and documents to submit.  Feel free to contact us at info@sdcpr-prcdc.ca if you have any questions.
  4. Be sure that the information provided is complete, true, exact and precise, including net profit/loss.
  5.  Be sure to understand that all incomplete applications, where information or required documents are missing, shall not be evaluated and will be deemed inadmissible for financing.
  6. Be sure to understand that  access to financing is to support SME, including social businesses, that are unable to access the government’s existing support measures or unable to obtain a loan/credit from traditional financial institutions, and that are struggling with working capital needs.
  7. Be sure to understand that the information contained in your application for funding is subject to the Access Information Act and the Privacy Act.
The steps
 
1.  Refer to the eligibility section of the Guidelines to ensure that your business meets the eligibility criteria.
   
2.  Download the following documents which must be filled out and submitted with your application (initial loan request):
  Appendix A – Financial forecast
  Appendix C – Personal finances
  Notice of consent to the PRCDC
  Disclosure of personal information
  Disclosure of information on the company
  Client attestation
   
3.  Click on the link below for the COVID-19 ASSISTANCE FUND (CAF) application.  (You may save your application and continue later.)
  Fill out the application ensuring that all the information (including net profit/loss) submitted are complete, true, exact and precise.  
  Attach the following documents with your application.  All incomplete applications, where information or required documents are missing, shall not be evaluated and will be deemed inadmissible for financing:
 
  • Appendix A – Financial forecast 
 
  • Appendix C – Personal finances 
 
  • Notice of consent to the PRCDC 
 
  • Disclosure of personal information 
 
  • Disclosure of information on the company 
 
  • Client attestation
 
  • Business most recent financial statement (audited, Notice to Reader or Review engagement) 
 
  • Year-to-date financial statements
 
  • Master Business licence of Incorporation documents 
   
Once your application is complete, submit it.  You will receive a confirmation email for your records.

Application analysis procedures
  • Receipt of application.
  • Evaluation if the application is complete, including required documents.
  • If complete, validation of information.
  • Thorough analysis of the application.
  • Preparation of the file with due diligence and submission to the PRCDC Board of Directors for evaluation and approval or refusal decision upon receiving the complete application.
  • All communications will be virtual until further notice.
SUBMIT APPLCATION FORM

Click HERE to download the online version of the application