Loans – Feds supply interest-free loans | St Thomas Occasions Journal
Companies struggling to get by means of this tough yr are inspired to contact their local people futures growth company for assist.
The CFDCs have acquired a pot of recent cash by means of the federal s Regional Aid and Restoration Fund, permitting them to supply extra interest-free loans to companies affected by the pandemic.
“I do recognize that persons are frightened by debt, however companies ought to contact us, and perceive this isn’t a standard loan, this can be a reduction measure,” stated Tom Russell, govt director of Thousand Islands CFDC.
This system affords enterprise loans of as much as $40,000, of which 25 per cent could be forgiven if reimbursement is made by Dec. 31, 2022. Additional, these loans are interest-free till 2025.
“5 years is a very long time, and we are going to do every little thing in our energy to make it as simple as we are able to for these companies,” stated Russell.
“We’re right here to assist companies which have had their revenues adversely affected by the COVID-19 pandemic,” stated Heather Lawless, govt director, Grenville CFDC.
Since its launch earlier this yr, the RRRF has helped greater than 1,000 companies preserve their staff and canopy working prices. On this space, the Grenville CFDC in Prescott and 1000 Islands CDC in Brockville have helped 58 companies cling on to 379 staff.
“The companies, employees and organizations in southern Ontario’s rural communities are a big a part of our area’s financial power. We all know they’ve confronted challenges because of the pandemic and we’re offering help to maintain them important,” stated Kate Younger, parliamentary secretary to the minister of financial growth in a launch.
In keeping with the CFDCs that administer this system, there aren’t any onerous loan safety necessities and this system is open to companies which have already acquired funding, though on the second spherical companies won’t be eligible for the loan forgiveness characteristic of this system.
“We are going to have a look at every case individually and attempt to make it work for them,” stated Russell.
In complete, an extra $1.96 million is being invested by the federal authorities to enhance the $2.1 million that was launched earlier this yr, for a complete of $4.1 million in COVID-19 reduction.
“Small and medium-size companies have been hit laborious by COVID-19 and the Regional Aid and Restoration Fund is right here to assist them, defending over 43,000 jobs throughout southern Ontario. With the second wave upon us, we’ve heard clearly from companies and employees that extra help is required. That’s why we’re enhancing and increasing the RRRF to assist much more Ontarians,” stated Melanie Joly, minister liable for FedDev.