Deadline for COVID relief funding quickly approaching, business owners urged to apply now

Small business owners in St. John’s and Mount Pearl who have been negatively impacted by the COVID-19 pandemic can apply for working capital loans up to $60,000 through the MAIN STREET Recovery Fund (MAINSTREET). You can apply for MAINSTREET even if you’ve received CEBA.

The COVID-19 pandemic has been tough on the small business community. We want to help you not only survive through the pandemic and beyond, but we want to help you thrive. 

The Government of Canada, through the Atlantic Canada Opportunities Agency (ACOA), is supporting Atlantic Canadian small businesses through the Regional Relief and Recovery Fund (RRRF). MAINSTREET is part of this support. If you are a small business owner in Mount Pearl or St. John’s who is unable to access other existing COVID-19 relief measures for your business, you can apply for this funding. Together with ACOA, MBO is delivering MAINSTREET for small East Coast businesses. The immediate financial support will help cover short-term operating expenses and other non-deferrable expenses which are critical to sustain business continuity. 

Small business owners impacted as a result of the COVID-19 pandemic can apply for loans up to $60,000 through MAINSTREET.

General Details

  • We are accepting applications until March 31, 2021, or until our funds are fully allocated.

  • 0% interest until December 31, 2022.

  • Funds can flow for eligible costs (for a 12-month period) up to September 30, 2021.

  • If you have received CEBA the loan forgiveness does not apply.

  • No principal payments until December 31, 2022.

    • Principal repayments can be voluntarily made at any time without fees or penalties.

  • Once you are approved for MAINSTREET, you will receive a deposit in your operating account within 5 business days.

If you borrowed $40,000 or less:

Repaying the outstanding balance of the loan on or before December 31, 2022 will result in loan forgiveness of 25 percent (up to $10,000).

Example:
Amount borrowed: $40,000
Amount repaid by December 31, 2022: $30,000
Available forgiveness: $10,000

If you borrowed from $40,000 to $60,000

If you received a $40,000 loan and subsequently received the $20,000 expansion loan, the terms of your forgiveness have changed. Repaying the outstanding balance of the loan on or before December 31, 2022 will result in a single portion of loan forgiveness up to $20,000 based on a blended rate:

  • 25 percent on the first $40,000; plus

  • 50 percent on amounts above $40,000 and up to $60,000.

Example:
 Amount borrowed: $60,000
Amount repaid by December 31, 2022: $40,000
Available Forgiveness: $20,000 ($40,000 x 25% + $20,000 x 50%)

After December 31, 2022, any outstanding balance will be converted into a flexible repayment period (3‑year term loan) maturing December 31, 2025 at 5% interest.

The full balance must be repaid by no later than December 31, 2025.

Eligibility Requirements

  • The business must have been adversely impacted because of the COVID-19.

  • The business must have been established before March 01, 2020.

  • The registered business office must be located within St. John’s or Mount Pearl.

  • The business must have been viable as of March 01, 2020.

  • The applicant has the ability and authority to bind the business.

  • Assistance may be provided to sole proprietorship, partnerships, incorporated companies and cooperatives (nonprofits are ineligible).

MBO reserves the right to accept a proposal. For further Inquiry Please Email MSRF@mboc.ca. The MSRF program is made possible by financial support from the Atlantic Canada Opportunities Agency (ACOA).

Shauna Waterman