The federal government has expanded its Regional Relief and Recovery Fund by $600-million, including the addition of $60.2-million for small and medium-sized businesses in Atlantic Canada.
Prime Minister Justin Trudeau announced the additional investment Friday with Ministers Melanie Joly (economic development and official languages) and Dominic LeBlanc (intergovernmental affairs).
Joly said although existing programs have made “a major difference” for businesses, “every time you extend the social safety net, you really need to make it tighter to make sure that no one falls through the cracks.”
“Today, it’s all about protecting local jobs, and ensuring they have the access to the support they need not just to survive, but to thrive,” she said.
The government initially announced the launch of the $962-million fund, including $110-million for Atlantic Canada, in May.
Atlantic Canada Opportunities Agency (ACOA) and the 41 Community Business Development Corporations (CBDCs) in small, rural and remote communities deliver the funds.
Of the additional funding, ACOA will administer $42.2-million and the CBDCs will deliver the rest.
“Now that we’re facing the second wave, it is really important that those regional development agencies can continue to be there for those very small businesses who will need support thru the second wave,” said Trudeau.
He also said his government is aware of concerns regarding rent relief.
“Commercial rent is provincial jurisdiction but the federal government is going to be stepping up. We will have more to say on support for fixed costs in the coming days,” he said.
The RRRF is meant to support businesses that may not be eligible for other programs, including those in key sectors like manufacturing, technology and tourism.
ACOA also encourages businesses that have applied for other federal relief programs but are unable to access sufficient relief to review RRRF eligibility requirements.
The fund provides working capital to help businesses pay for sales and marketing, product development, and wages, among other things. It’s also mean to support their recovery projects.
In the Atlantic provinces, the fund has helped keep over 9,000 jobs in more than 1,300 SMEs.
The addition means the total RRRF money allocated for Atlantic Canada now stands at $170.2 million.
Joly said the RRRF acts as “a backstop” for businesses who may not be able to access the Canada Emergency Wage Subsidy or the Canada Emergency Business Account, among other programs.
“In certain sectors that are most hard hit, such as the tourism sector for example, business have difficulty to have access to financial tools through the financial system because risks are higher…so we’ve been providing the microcredit that they need,” she said.
Regional economic development agencies are key in the delivery of these funds because they’re “very, very close to the ground in many different parts of the country,” she said
“We know that sometimes a business is very important to a community and they need to have access to the capital, so we’ve been providing that capital for them to keep the jobs.”
Additionally, she said the federal government has also been providing funding to allow Chambers of Commerce across Canada to offer technical advice to struggling businesses.
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