Payment-deferred, interest-deferred loans now available to small businesses through Muskoka Futures

Submitted by Muskoka Futures

It is here. The Muskoka Business Recovery Fund supported by the Federal Government under the Regional Relief and Recovery Fund (RRRF) is ready to support businesses in Muskoka.

As a result of the COVID-19 pandemic, businesses across Muskoka have been significantly impacted due to required closures and resulting decreases in revenues. Although numerous measures to support businesses have been announced since the beginning of this unprecedented economic shut down, eligibility criteria of these programs has still left many businesses without access to funding. To address these gaps the Federal Government is providing funds to Community Futures Development Corporations (CFDCs) across the country to lend to businesses in an effort to provide relief and assistance through recovery.

“Muskoka Futures has been supporting Muskoka businesses for the last 30 plus years,” said David Brushey Muskoka Futures’ executive director. “We have been fielding calls and supporting businesses as best we can since the beginning of this situation, including having implemented a number of changes to support our current loan clients early in this economic shutdown. We are pleased to have received this further funding from the Federal Government to be able to address recovery in Muskoka for the businesses that contribute to our community and who have struggled to fit into currently announced funding programs,” Brushey continued.

Under the Muskoka Business Recovery Fund, small businesses who have been unable to qualify for current COVID-19 support programs (Canada Emergency Business Account, Wage Subsidy Programs, etc.) can apply for a loan of up to $40,000 to support operating costs. Loans will be established at zero per cent interest and no payments are required until December 31, 2022.

Principal repayments can be voluntarily made at any time. Similar to the Canada Emergency Business Account, 25 per cent of any loan (up to $10,000) can be forgiven provided the recipient has paid 75 per cent of the original loan amount prior to December 31, 2022. If the recipient is unable to repay the loan by December 31, 2022, the loan will be converted to a three-year term loan with interest rates not to exceed five per cent, effective January 1, 2023. The full balance must be repaid no later than December 31, 2025.

“While we have seen great examples of the resiliency and creativity of local businesses over the last few months, we also understand that many businesses have struggled and feel overwhelmed by the current situation. We understand how challenging this has been for them and we have worked to make the application process for the Recovery Fund as seamless and efficient as possible,” said Brushey.

“The support we offer is not just financial, as we have a robust support program, called Momentum, that is designed to help businesses with strategy and business development.

“Through our Advisors in Residence program businesses can access advisors in Human Resources and Sales and Marketing. Our Program Coordinator, Jodi Chapman-Good, is here to help guide and support you through strategy consultations, and in accessing relevant programs and resources offered across the Province.”

To apply for the Muskoka Business Recovery Fund, please visit Muskoka Futures’ website at muskokafutures.ca or contact Tyler Lockhart, Muskoka Futures investment consultant, at rrrf@muskokafutures.ca.