How RRRF Loan Repayment and Forgiveness Works in Canada

By GrantHub Research Team · · Lire en français

How RRRF Loan Repayment and Forgiveness Works in Canada

Many Canadian businesses received RRRF support during COVID‑19. Now, many are asking: what do I actually have to repay, and by when? The Regional Relief and Recovery Fund (RRRF) was set up as a loan with partial forgiveness. The rules depend on how and where your funding was delivered. If you miss a deadline, you may have to repay 100% of the loan.


How the Regional Relief and Recovery Fund Was Structured

The Regional Relief and Recovery Fund (RRRF) was part of Canada’s COVID‑19 Economic Response Plan. It provided more than $2 billion across the country to help businesses survive the pandemic. About 25% of RRRF funding went to tourism, and nearly $865 million was allocated to Western Canada.

RRRF funding was not a grant. It was a repayable loan with a forgiveness option, but only if you met certain conditions.

Here are the main points:

  • RRRF loans were interest‑free
  • Some of the loan could be forgiven if you paid back the required amount on time
  • The rest of the loan had to be repaid
  • Forgiveness depended on paying back the required portion by the deadline

Applications are now closed, but repayment and forgiveness rules still apply to all recipients.


RRRF Loan Repayment and Forgiveness Explained

Understand the Two Parts of Your RRRF Loan

Most RRRF loans had two parts:

  • Unconditional portion
    This amount must be repaid to qualify for forgiveness.

  • Conditional (forgivable) portion
    This part is forgiven only if you pay the unconditional portion by the deadline.

If you miss the repayment deadline, the whole RRRF loan must be repaid.


Know Your Repayment Deadline

Deadlines depend on the organization that delivered your RRRF funding. For businesses that received RRRF funding directly from PacifiCan:

  • Repayment deadline for unconditional portion: March 28, 2024
  • If you pay this amount on time, you qualify for partial loan forgiveness
  • If you miss the deadline, you must repay 100% of the loan
  • You have until December 31, 2026 to repay any remaining balance

If your RRRF loan came from:

  • Community Futures
  • Western Economic Diversification intermediaries
  • WeBC or other regional partners

Your terms may be slightly different. Always check your original funding agreement or contact your loan officer.


Common Mistakes to Avoid

  1. Thinking RRRF was a grant
    RRRF was a loan with conditions. Many businesses confuse it with non‑repayable funding.

  2. Missing the repayment deadline
    Even a small delay can mean you lose forgiveness and must repay the full loan.

  3. Contacting the wrong organization
    Repayment is handled by the partner who delivered your funding, not always by the federal department.

  4. Ignoring tax planning
    Forgiven amounts may affect your taxes if not recorded properly.


Who Administers Your RRRF Loan

Your repayment process depends on who delivered the funding, not just your province.

You may need to contact:

  • PacifiCan (for direct recipients in British Columbia)
  • Your local Community Futures office
  • A regional economic development agency
  • WeBC (for some women‑led businesses)

Each administrator handles invoicing, confirmations, and forgiveness tracking.


Tax Treatment of RRRF Loans

RRRF funding is usually treated as a government assistance loan, not immediate taxable income. However:

  • Forgiven portions may have tax consequences
  • Treatment depends on how you recorded the funds in your books
  • Ask your accountant about tax impacts before making your final repayment

Frequently Asked Questions

Q: Is the Regional Relief and Recovery Fund still open?
No. Applications are closed, but repayment and forgiveness rules still apply to all recipients.

Q: How much of my RRRF loan can be forgiven?
A portion of the loan may be forgiven if you pay the required amount by the deadline set in your agreement.

Q: What happens if I miss the RRRF repayment deadline?
You lose eligibility for forgiveness and must repay 100% of the loan.

Q: Was RRRF only for tourism businesses?
No. Tourism was a priority, but RRRF also supported other sectors affected by COVID‑19.

Q: Who do I contact about my RRRF loan?
Contact the organization that delivered your funding, such as PacifiCan, Community Futures, or WeBC, based on your agreement.


  • Can You Combine Multiple Grants and Loans in Canada? Stacking Rules Explained
  • How Government Grants Interact with Loans and Equity Financing in Canada
  • How to Stack Grants and Loans Without Violating Funding Rules

Next Steps

If you received RRRF funding, check your repayment deadline and forgiveness eligibility as soon as possible. If you are looking for new funding, tools like GrantHub’s eligibility matcher can help you find current programs that fit your business needs. GrantHub tracks hundreds of active grant and loan programs across Canada. This can help you see what support options are available as your business moves forward.

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