Foothills area businesses who have not been able to access funding to help with the difficulties brought on by COVID-19 have another avenue they can explore.
Highwood Community Futures, along with the other 26 Community Futures in Alberta, is accepting applications for small business loans as part of the government of Canada’s Regional Relief and Recovery Fund.
“This is for anybody who has fallen through the cracks with the other kind of government funding that has been available,” said Sara Noyes, Highwood Community Futures executive director. “It might be a sole proprietor or pay themselves dividends or have sub-contractors that did not qualify for other funding.
“Agriculture businesses, value-added agricultural businesses, so many rural businesses have fallen through the cracks and the federal government recognized that.”
Community Futures supports businesses in rural Canada, as a result Calgary and Edmonton are not part of the fund.
Community Futures has started looking at applications for the just shy of $27-million available for rural businesses.
“There has been a huge demand so far,” Noyes said. “We only have a certain amount of money and we have 27 Community Futures offices, the money will be doled out based on need. There is a finite amount of money. We cannot help everyone.
“We are trying to say that if you are needing money, you need to do your application. At some point we will run out of money.”
To fill out the application go to http://highwood.albertacf.com/rrrf-highwood
She said the money is for stop-gap measures and not to make any large transitions for businesses or to pay a mortgage for six months, for example.
“It is really meant to fill the holes to make sure businesses survive,” Noyes said.
She said for example it could help with salaries – some businesses are open but not making enough money to sustain payroll. Some businesses need supplies, inventory, insurance payment and others.
“Just regular business expenses that they can’t meet right now,” Noyes said.
Highlights of the loan are:
Small-and medium-sized businesses can apply for loans of up to $40,000 with terms that include:
- No interest accrual or principal payments through Dec. 31, 2022.
- If 75 per cent of the loan is repaid by Dec. 31, 2022, the remainder of the loan is forgiven.
- Blended principal and interest payments beginning January 1, 2023 and loans must be repaid by December 31, 2025.
- No prepayment penalties.
Getting the loan isn’t a slam-dunk -- afterall, Community Futures is doling out taxpayers' money.
“It has to make sense, we have to know we are helping a business that is viable – expenses that are reasonable and sensible, that is what we are looking for in these loans,” Noyes said. “You are asking for $40,000, I want you to break down how you are using that $40,000.”
Highwood Community Futures' reach goes beyond Okotoks. It covers all of Foothills County and Vulcan County and the municipalities within it. It also covers Nanton, part of the MD of Willow Creek.
She said businesses are struggling across the region.
“It is really dependent on the industry and how creative a business has been able to get in terms of making changes to make it sustainable,” she said. “So many industries have been hard hit.
“So many businesses have fallen through the cracks – not being able to access government funding.”
There is one thing all residents can do.
“I cannot stress enough how important it is to shop local,” Noyes said. “Make sure you are supporting the mom and pop shops and the local stores – that includes franchises.
“Spend money in those brick-and-mortar stores that need money to stay open.”
