Question Period Note: SUPPORTING BUSINESSES AND COMMUNITIES THROUGH THE REGIONAL DEVELOPMENT AGENCIES

How have Canada’s Regional Development Agencies (RDAs) helped businesses and communities survive the COVID pandemic?

• Regional development agencies have been helping businesses weather the impacts of the pandemic since its outset.
• They have shifted their focus from pandemic response to economic recovery, delivering over $2 billion through a series of initiatives, including:
o The $700 million Jobs and Growth Fund;
o The $500 million Canada Community Revitalization Fund; and,
o The $500 million Tourism Relief Fund.
• These initiatives are focused on a diverse and inclusive recovery, supporting hard-hit sectors, businesses, and communities.
• Regional development agencies continue to provide funding through their suite of regular programs and initiatives to assist businesses, organizations and communities.

• To ensure businesses and communities across Canada have the support they need to get through the pandemic, Budget 2021 provided regional development agencies (RDAs) with over $2 billion in funding to support hard-hit sectors, businesses and communities. These initiatives include:

o The $700 million Jobs and Growth Fund to help create jobs, support inclusive and clean growth, and lift up struggling businesses and communities; NOTE: the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and the Federal Economic Development Agency for Northern Ontario (FedNor) are no longer accepting applications for the Jobs and Growth Fund as it is fully subscribed.
o The $500 million Canada Community Revitalization Fund to support communities, towns and cities as they invest in infrastructure that will assist with community vitality, support social and economic cohesion and help reanimate communities; NOTE: Canada Economic Development for Quebec Regions (CED), FedDev Ontario, FedNor and Prairies Economic Development Canada (PrairiesCan) are no longer accepting applications for the Canada Community Revitalization Fund as it is fully subscribed.
o The $500 million Tourism Relief Fund to help tourism entities strategically adapt their products and services to adjust to public health requirements, while planning for, and investing in, recovery efforts for future growth; NOTE: FedDev Ontario and FedNor are no longer accepting applications for the Tourism Relief Fund as it is fully subscribed.
o The $250 million Aerospace Regional Recovery Initiative to support projects aimed at maintaining and enhancing innovation, productivity, and competitiveness of aerospace SMEs; and,
o The $200 million Major Festivals and Events Support Initiative to offer financial support to Canada’s major festivals and flagship events to mitigate possible closure, offer alternate activities in light of constraints imposed by the pandemic, and position themselves for the future. NOTE: FedDev Ontario is no longer accepting applications for the Major Festivals and Events Support Initiative as it is fully subscribed.
• Recognizing the RDAs’ ability and success in delivering funds quickly and effectively throughout the pandemic, the budget also put forth a number of important opportunities for RDAs to build on this potential, including, among others:
o An additional $51.7 million over four years, starting in 2021-22, to Innovation, Science and Economic Development Canada and the regional development agencies for the Black Entrepreneurship Program.
• Budget 2021 also enabled the creation of a new regional development agency for British Columbia – Pacific Economic Development Canada - with a budget of $553.1 million over five years and $110.6 million ongoing to ensure businesses in B.C. can continue to grow and create good jobs for British Columbians.
• Existing core program funding from the former Western Economic Diversification Canada – now Prairies Economic Development Canada – also remains in place to support the Prairies, making additional support available for businesses in Alberta, Saskatchewan, and Manitoba.
• Budget 2021 also enabled FedNor to become a standalone regional development agency and committed to further strengthen the economic development of Northern Ontario.

Canada's regional development agencies (RDAs) are the front line for economic development in Canada and are instrumental in addressing key economic challenges by providing regionally tailored programs, services, knowledge and expertise.
RDA programs foster the right environment to enable businesses to grow and entrepreneurs and innovators to start businesses, creating the ideal conditions for the development of strong, dynamic and inclusive regional economies throughout the country.
RDAs support regional innovation ecosystems and help businesses scale up by:

• delivering nationally coordinated programs tailored to fit regional needs and circumstances;
• providing access to financial assistance;
• bringing together key players in their respective ecosystems;
• supporting community economic development; and,
• ensuring that regional growth strategies eliminate regional gaps and align with federal government objectives.
COVID supports administered through the RDAs
The following COVID-19 supports, which have now been fully subscribed and are no longer active initiatives, were administered by the RDAs:
• The Regional Relief and Recovery Fund (RRRF) provided over $2 billion in assistance to businesses and communities that may require additional support to cope with and recover from the pandemic. It provided liquidity to businesses, helping bridge them to the recovery, and preserved 156,000 jobs.
• The Regional Air Transportation Initiative (RATI) is providing $206 million to eligible regional businesses and airports that directly contribute to regional air transportation. RATI was designed to help ensure that regional air connectivity and services, which are critical to economic growth, were maintained and regional routes were re connected across the country.
• The Canadian Seafood Stabilization Fund, a $62.5 million fund delivered directly through the Atlantic Canada Opportunities Agency, Prairies Economic Development Canada, Pacific Economic Development Canada, and Canada Economic Development for Quebec Regions. This fund helped businesses access short-term financing to increase storage capacity, find storage solutions for unsold products, adapt plant operations, and invest in equipment, services and materials.