Regional Relief and Recovery Fund support for Western Canadian businesses tops $154 million Français
More than 2,400 businesses in Western Canada receive RRRF funding to protect almost 11,000 jobs and address the impact of COVID-19
WINNIPEG, MB, Sept. 3, 2020 /CNW/ - COVID-19 has had a severe impact on businesses of all sizes across the country, and those whose livelihoods depend on them. Across Western Canada, thousands of local businesses have faced challenges keeping their employees, paying rent and managing cash flow. From the outset, the Government of Canada has taken meaningful action to support them, including through the $962 million Regional Relief and Recovery Fund (RRRF.)
Nearly doubling the budget of Canada's Regional Development Agencies, the RRRF supports businesses that have been unable to get access to other federal relief measures, and might be in danger of falling through the cracks. In the West, Western Economic Diversification Canada (WD) is delivering, in collaboration with the Community Futures Pan West Network, over $300 million to protect jobs, support businesses and help them play a role in our economic recovery.
Jobs and Recovery for Western Canada
The Honourable Mélanie Joly, Minister of Economic Development and Official Languages, and Minister responsible for Western Economic Diversification Canada, today announced that more than 2,400 businesses in Western Canada have received over $154 million in RRRF funding, protecting almost 11,000 jobs in communities across the West.
Most of the firms supported are small businesses with fewer than 100 employees, including many local start-ups. One such firm is Winnipeg's Vexxit Inc., which opened in January 2020 – just before COVID-19 hit. This burgeoning start-up, which is majority women owned, has a unique IP-protected algorithm to match professional services firms to clients. The RRRF has played a major role in helping it maintain its team of highly skilled employees, including data scientists and IT professionals as well as positioning it to play a role in our economic recovery.
Quotes
"Businesses and workers across Western Canada have been hit hard by COVID-19, and we're here for them. This includes major support from programs like the RRRF, so no one falls through the cracks. The funding is making a major difference for thousands of Western businesses, and protecting almost 11,000 jobs from Winnipeg to Victoria. Our message is clear: we've been here for you with immediate measures, we're here for you now as our economy reopens and we'll get through this, together. We're working with you to support good, local jobs and help Western Canada's economy come back strong."
- The Honourable Mélanie Joly, MP for Ahuntsic-Cartierville, Minister of Economic Development and Official Languages, and Minister responsible for Western Economic Diversification Canada
"I've spoken with entrepreneurs throughout the West. The pain from this pandemic is real, the needs are many. The Government of Canada recognizes this, and we've listened closely about how we can help western entrepreneurs survive, recover and rebound. Today's announcement reflects our ongoing commitment to rebuild and energize the West's small business community and protect the local jobs that are so important to Westerners."
- Terry Duguid, Parliamentary Secretary to the Minister of Economic Development and Official Languages (Western Economic Diversification Canada) and to the Minister of Environment and Climate Change (Canada Water Agency)
"The funding provided by WD has allowed Vexxit to maintain momentum through the economic slowdown associated with COVID. Being a startup that had just launched its digital marketplace matching professionals and potential clients in January, the WD funding allowed Vexxit to remain focused on the momentum that was building. As a result Vexxit has increased its marketshare locally, begun its expansion across Western Canada and has been able to hire 5 additional full time employees to meet the growing demand for the marketplace. The application process was straight forward and the staff at WD were helpful at every turn. Thanks to the support from WD, there's now place for people and businesses to come together and prepare as we transition into our new reality."
- Polly Craik, Director, Vexxit Inc.
Quick facts
- The Regional Relief and Recovery Fund was established to mitigate the financial pressure experienced by businesses and help them to continue their operations. Through its two RRRF funding streams, WD provides repayable, interest-free funds to eligible western firms seeking up to $40,000, as well as funding of up to $1,000,000 in support to cope with financial hardship resulting from COVID-19.
- Funding announced to date supports a broad number of businesses ranging from main street businesses such as retail shops, restaurants, and corner stores to larger businesses that employ more than 100 employees.
Backgrounder: Relief and recovery funds for western businesses
Today, the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, and Minister responsible for Western Economic Diversification Canada (WD), announced $154,529,904 to date in support of 2,446 businesses that were not able to access existing Government of Canada COVID-19 relief measures. This WD funding comes from the Regional Relief and Recovery Fund.
$75.3 million for main street businesses and SMEs
The Regional Relief and Recovery Fund was established to mitigate the financial pressure experienced by businesses to allow them to continue their operations. The projects announced to date include Stream 1 funding of up to $40,000 for 2,242 projects to support a wide-range of businesses across Western Canada:
- British Columbia: 813 projects ($27,309,950)
- Alberta: 1,250 projects ($41,995,801)
- Saskatchewan: 110 projects ($3,719,715)
- Manitoba: 69 projects ($2,261,042)
Grand total: 2,242 projects ($75,286,508)
RRRF support includes $79.2 million for broader business sector
WD is targeting support to help businesses retain diverse and valuable talent; maintain sector knowledge and skills; maintain capital flow; maintain critical supply chains and increase capacity to withstand supply chain disruptions; protect technologies and processes that improve resilience, productivity, and/or competitiveness; and protect vital intellectual property. The Stream 2 funding announced to date includes 204 such projects designed to support western Canada's economy:
- British Columbia: 67 projects ($26,541,738)
- Alberta: 97 projects ($36,997,066)
- Saskatchewan: 24 projects ($9,364,514)
- Manitoba: 16 projects ($6,207,396)
Grand total: 204 projects ($79,243,396)
Supporting businesses of all sizes
Businesses, large or small, are the backbone of the Canadian economy, and their recovery is critical to Western Canada's success. WD is providing $69.3 million to support very small businesses (those with 4 and under employees), $80 million to support small businesses (5-99 employees), and $5.2 million to support medium businesses. Through these investments, 11,569 jobs are protected.
British Columbia:
- 1,024 jobs protected in 725 firms with 1-4 employees
- 2,574 jobs protected in 151 firms with 5-99 employees
- 620 jobs protected in 4 firms with 100+ employees
Alberta:
- 1,581 jobs protected in 1,134 firms with 1-4 employees
- 1784 jobs protected in 210 firms with 5-99 employees
- 455 jobs protected in 3 firms with 100+ employees
Saskatchewan:
- 187 jobs protected in 91 firms with 1-4 employees
- 609 jobs protected in 41 firms with 5-99 employees
- 49 jobs protected in 2 firms with 100+ employees
Manitoba:
- 101 jobs protected in 59 firms with 1-4 employees
- 395 jobs protected in 25 firms with 5-99 employees
- 9 jobs protected in 1 firm with 100+ employees
Total:
- 2,893 jobs protected in 2,009 firms with 1-4 employees
- 6,945 jobs protected in 427 firms with 5-99 employees
- 1,133 jobs protected in 10 firms with 100+ employees
- Grand total: 10,971 jobs protected in 2,446 firms
Related products
- News Release - COVID-19: Western Economic Diversification Canada launches Regional Relief and Recovery Fund to support local economy
- Over $95 million in relief and recovery funds flow to businesses in Western Canada
Associated links
- Western Economic Diversification Canada
- Regional Relief and Recovery Fund
- Canada's COVID-19 Economic Response Plan
Stay Connected
Follow the department on Twitter: @WD_Canada
WD Homepage
WD Toll-Free Number: 1-888-338-WEST (9378)
TTY (telecommunications device for the hearing impaired): 1-877-303-3388
SOURCE Western Economic Diversification Canada
Alexander Cohen, Press Secretary, Office of the Minister of Economic Development and Official Languages, [email protected]; Western Economic Diversification Canada, Media Relations, [email protected]
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