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Fund helps Powell River businesses during pandemic

Business loans available through Community Futures
Community Futures Powell River
HELPING OUT: Community Futures Powell River has a loan program called the regional relief and recovery fund to help local businesses through the COVID-19 pandemic. An online portal for applications is now open. Contributed photo

For businesses small and medium-sized hit hard by COVID-19, Community Futures Powell River now has a fund to help out.

Called the regional relief and recovery fund (RRRF), qualifying businesses in Powell River will be able to apply for loans of up to $40,000.

Allison Boulanger, executive director of Community Futures Powell River, said in the four western provinces, $95.7 million has been received for the RRRF.

“We get a piece of that pie,” said Boulanger.

She said the difference between RRRF and the Canada Emergency Business Account (CEBA) is that the CEBA loans are $40,000.

“There were no if, ands or buts; if you qualified, it was $40,000,” said Boulanger. “This one (RRRF) is up to $40,000.

“We are dealing with a lot of smaller businesses that are in just as much trouble, but don’t need $40,000.”

Boulanger said businesses that fell through the cracks with CEBA funding is where Community Futures is picking up with the support.

Even if a business applies for $40,000, they are not necessarily going to get $40,000, according to Boulanger, because Powell River has a very small pot of money.

“CEBA was probably in the billions of dollars,” said Boulanger. “We have a small amount. When you break down the $95.7 million, that’s not a lot of money. We’ll go through it pretty quickly if it’s $40,000 each. We wouldn’t be able to help half of the businesses that need it in Powell River.

“It will be on a case by case basis. We will be assessing each application for their individual financial emergency needs and dealing directly with them on the application, finding out what they need to get them through this.”

Community Futures has to confirm the business was not in trouble prior to COVID-19 and that it still will be a viable business with the emergency funding.

To qualify, it needs to be shown that the business is suffering a financial hardship in its operating costs, according to Boulanger.

Some of the loan highlights include:

· No interest accrual or principal payments through December 31, 2022 

· If 75 per cent of the loan is repaid by December 31, 2022, the remainder of the loan is forgiven 

· Blended principal and interest payments begin January 1, 2023. Loans must be repaid by December 31, 2025 

· No prepayment penalties

The online portal for applications is now open and the best way to access it is on the Community Futures British Columbia website at communityfutures.ca. In the top left-hand side of the home page a button states: Apply online for CR RRRF funding. After clicking on the button, users scroll down to the red box and type in Powell River. Boulanger said the applicant must create a user ID and password to connect to the application portal. 

“Once submitted, the application will be forwarded on to our office for adjudication,” said Boulanger.

Program availability is on a first-come, first-served basis. Boulanger said there have already been 12 applications for the RRRF program in Powell River and there are four more users who have registered, although they have not completed the application.

Community Futures will be carrying out due diligence to ensure businesses that need help are receiving it, said Boulanger.