RRRF Loan Payment Options to Meet the January 18, 2024 Deadline
RRRF Loan Payment Options to Meet the January 18, 2024 Deadline
There are options for the repayment of the RRRF loan you have with Community Futures Prince Edward Lennox Addington.
The three options are:
The three options are:
- Payoff the RRRF loan in full by January 18, 2024 (NEW and FINAL DEADLINE)
- Convert the full balance to a three-year term loan
- Refinance to a term loan
1. Pay off the RRRF loan in full by January 18, 2024
The NEW and FINAL DEADLINE for the repayment of your RRRF loan to qualify for loan forgiveness and the interest free period is January 18, 2024. This date extension and forgiveness only applies to borrowers who meet the RRRF eligibility criteria and are in good standing.
The following are payment options if you are paying off the loan in full:
Option 1: Pre-authorized debit
∙ Make a pre-authorized one-time payment from your account. If you choose this option, our finance administrator can reach out and coordinate the details. (A form will need to be completed and signed authorizing the amount).
Option 2: Pay directly to Community Futures Scotiabank account
∙ The Scotiabank account can be provided. As we have several clients repaying their loans with similar amounts, please confirm the loan number and amount of the payment in an email so we can credit your account.
Option 3: Mail a bank draft
∙ Make bank draft payable to Prince Edward Lennox and Addington (PELA) Community Futures. Including the loan number on the memo line.
∙ Mail to: Community Futures, PO Box 6173, Picton ON K0K 2T0
2. Convert full balance to a 3-year term loan
If you are unable to repay your total loan by January 18, 2024, the total loan will be converted to a 3-year term loan
and the full balance must be repaid by Dec 31, 2026 at an interest rate of 5% (TBC). No portion of your loan is forgivable with this option.
3. Refinance to a term loan
The third NEW option is to apply to Community Futures Prince Edward Lennox Addington to refinance with a term loan and still benefit from the forgiveness by January 18, 2024.
- Loan term would range from two-to-three years making interest and loan principal payments at a rate of prime + 3% - prime + 5% (as of November 15, 2023, prime was 7.2%)
- To qualify for potential loan forgiveness some of the requirements would include, but are not limited to:
a. providing a refinancing loan application;
b. providing updated filed business tax returns;
c. a copy of your most recent financial statements (income statement, balance sheet and retained earnings)
d. proof of up-to-date government payments with a minimum credit score.
Please email to discuss the options and together we can decide which option best meets your needs. Please note it is very important you contact Brenda Hildebrandt before January 18, 2024, to confirm which option you would like to proceed with.
