Approximately $12 million of RRRF top-up earmarked for ACOA will go to small- and medium-sized businesses (SMEs) in Newfoundland and Labrador to help them continue operating and keep their employees
October 14, 2020 · St. John’s, Newfoundland and Labrador · Atlantic Canada Opportunties Agency (ACOA)
Canada’s COVID-19 Economic Response Plan has helped to protect millions of jobs, provide emergency support to families and keep businesses afloat as they deal with the impact of COVID-19. A central part of this is the Regional Relief and Recovery Fund, which helps support those who may not be eligible for other programs. A lifeline for businesses that might otherwise not have survived, the RRRF has been vital in helping them keep their employees, pay bills and get access to capital.
Since launching the RRRF in May, more than 1,500 jobs have been protected in Newfoundland and Labrador through ACOA investments totalling $20.6 million in 99 projects at SMEs and business support organizations. However, many SMEs are still struggling as entrepreneurs try to position their firms for recovery while the economy safely reopens.
Funding allocated to support Newfoundland and Labrador economy
On October 2, the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, announced that ACOA was receiving an additional $42.2 million to further support businesses through the RRRF. Today she announced that approximately $12 million of that amount will go to SMEs in Newfoundland and Labrador that still need extra cash flow to deal with the ongoing economic impacts of COVID-19.
Minister Joly also met virtually with Jeff LeDrew, CEO of Jumping Bean Coffee Inc., today to hear first-hand how his business has been impacted by the pandemic. Jumping Bean received a repayable investment of $200,000 through the RRRF as working capital assistance to mitigate economic hardships resulting from COVID-19. The support will help improve the prospects of business survival and better position the company for recovery.
Eligible businesses and organizations in Newfoundland and Labrador that require additional help to recover from the pandemic are encouraged to apply for the RRRF through ACOA or their local Community Business Development Corporation (CBDC).