LAKELAND - A second round of funding is now available to small businesses struggling to keep their heads above water through the challenges presented by the COVID-19 pandemic. Community Futures offices throughout the region received funds last week to support business owners through the Regional Relief and Recovery Fund (RRRF).
The federal government announced in October it was making an additional $263.7 million to Western Economic Diversification Canada with $67 million being earmarked for Community Futures organizations to support businesses in rural communities in western Canada. That second phase of funding is now in the hands of the Community Futures offices throughout the Lakeland region.
In round one, St. Paul – Smoky Lake Community Futures provided just shy of $778,000 in loans to small business operations in the St. Paul office area, according to general manager Penny Fox. Thirty-two applications were received in the first round with three-quarters of the applicants being successful in receiving support.
“We appreciate that the Federal Government has heard and understands that COVID has lasted longer than we anticipated and recognize that businesses have had a very difficult year and are still not seeing the end in sight. These supports can help them maintain their operations until better times arrive,” Fox said Friday.
Small and medium sized businesses and not for profit organizations can apply for loans up to $40,000. These loans are interest free with no payments until Dec. 31, 2022. If they are repaid by that date, then 25 per cent of the loan is forgiven, according to Fox.
While application for these funds is made online, Fox said it is important for people to know they can contact their local Community Futures offices in St. Paul, Bonnyville and Lac La Biche for assistance in navigating the process.
“We don’t want anyone to struggle with the application,” she said. “We are here to help and make it easy and less frustrating as possible.”
People who received assistance in the first go-round can apply again. However, the maximum funding available is a total of $40,000. Support through this avenue is available to those businesses who have not accessed other federal government COVID-related initiatives.
Small business operations that tapped into the loan support earlier this year came from a broad spectrum in the area and included retail, family-run agricultural and food operations, transportation, personal services such as hairdressers and manufacturing.
“All of these businesses have been impacted negatively by COVID,” Fox said. “Many had their doors shut or restrictions placed on operating hours, etc. Even though their doors were closed they were still paying utilities, rent etc. etc. Small farmers were affected by the markets dropping, auction marts having their doors closed or grain deliveries halted. Many had to rent more land to produce extra feed or rent extra pasture.”
In the application process, businesses will have to show how their operations have been impacted by COVID-19, including expenses related to the pandemic. They will also be required to provide a financial statement.
“One thing that is important for people to know is that even though the application is done on-line, through our website, they can call us and we can help them through the application.,” Fox said. “Once they register for the loan, we see their information and will call them. That gives them a chance to tell their story about how this year has been different – as sometimes those things are difficult to say on a form.”
