The COVID-19 pandemic has affected some Yukon businesses and they need financial help. The Regional Relief Loan Program gives out loans to help these organizations. These loans are interest-free until December 31, 2022. Principal payments are deferred until then.
The program is funded by the Government of Canada through Canadian Northern Economic Development Agency's Regional Relief and Recovery Fund.
Who can apply?
The program is open to all Yukon businesses, including social enterprises, affected by COVID-19 and in need of funding.
A Yukon-based business must meet 3 of the following 4 criteria.
- Have an office with a physical address in Yukon.
- Be subject to the Yukon Income Tax Act.
- Have a valid registration with Corporate Affairs (Business Corporations Act, Partnership and Business Names Act, or Societies Act).
- Have a valid municipal business licence, where applicable.
Other requirements include the following. Applicants must:
- have been negatively impacted by the COVID-19 pandemic and in need of funds;
- have applied to other COVID-19 support programs for which they are eligible;
- show they do not stand to directly profit from the use of this or any other funding they either have or are in the process of accessing under Canada’s COVID-19 Economic Response Plan, such as the Canada Emergency Business Account or the Canada Emergency Wage Subsidy; and
- not receive a loan for the same costs for which they have received or will receive other federal relief measures.
There is significant demand for the Regional Relief Loan Program and consideration of applications is subject to availability of funds
- Government of Yukon and its corporations
- Government of Canada and its corporations
- Yukon First Nations governments
Details of the loan
- Each business can receive up to a maximum of $100,000 in loans.
- When we calculate the amount of the loan, we'll only consider the costs for which applicants have not received any other government relief or assistance.
- The loan will be interest-free and have principal payments deferred until December 31, 2022.
- Applicants can repay the loan fully or partially without penalty, except any interest payable as specified below.
- If applicants repay 75% of the principal amount of the loan by December 31, 2022, the balance equal to 25% of the loan to a maximum of $25,000 will be credited against the outstanding balance of the loan.
- If applicants do not fully repay the loan by December 31, 2022, they must repay the balance due, plus interest, within 3 years starting January 1, 2023. The full balance must be repaid no later than December 31, 2025.
- We'll charge an interest rate of up to 5% between January 1, 2023, and December 31, 2025.
- Costs that will help to stabilize the applicant to mitigate impacts of COVID-19 that are not covered by other government COVID-19 relief measures.
- Costs that have become due or have been incurred since March 15, 2020.
- Costs that are not otherwise ineligible.
- Costs related to refinancing of an existing debt.
- Costs related to land acquisition.
- Costs related to the purchase of any assets for more than the fair market value of that asset.
- Costs of amortization.
- Costs for which the applicant has received or will receive other relief funding measures from government agencies.
Prepare your application
Gather supporting documents for your application. These may include:
- financial statements;
- 12-month cash-flow projection;
- CRA notice of assessment for last tax year filed (if applicable); and
- other documents to show need and to support the application (if applicable).
How to apply
- Complete application form.
- Submit the application and required documents by June 30, 2021 at 4:30 p.m..
In person: 303 Alexander Street, 2nd floor, in Whitehorse. Our office is open Monday to Friday, from 8:30 a.m. to 4:30 p.m.
Government of Yukon
Business and Industry Development (F-1)
For questions about the Regional Relief Loan Program, phone 867-456-3803 or 1-800-661-0408, extension 3803, or email email@example.com