Small- and medium-sized businesses (SMBs) in the region will soon have access to additional relief funds to help them recover from the effects of the coronavirus pandemic.
Distributed on behalf of Western Economic Diversification Canada, the South Central Community Futures organization is now accepting applications from SMBs as part of the regional relief and recovery fund program that will provide loans up to $40,000. To qualify for the program, the SMBs must attest to their ineligibility for other federal government COVID-19 support programs, such as the Canada Emergency Business Account (CEBA) or the Business Credit Availability Program (BCAP).
The small business must have been viable and not experiencing any liquidity or other financial difficulties as of March 1, 2020, a news release explained. It must also have experienced a material adverse effect on business operations on or after March 1 due to the pandemic, have been established before March 1, and must be the sole proprietorship, partnership (except professional services), corporation, social enterprise, or other similar organization.
All operating expenses, payroll, and other non-deferrable expenses that are critical to sustaining business continuity are eligible to be submitted for the program.
As part of the repayment terms of the program, there will be no interest accrual or principal payments through Dec. 31, 2022. If business owners repay 75 per cent of the loan by Dec. 31, 2022, the remainder of the loan will be forgiven. However, blended principal and interest payments and loans that begin on Jan. 1, 2023, must be repaid by Dec. 31, 2025.
There will be no pre-payment penalties.
For more information, visit cfsask.ca/south-central.
