Canada Small Business Financing Act

Version of section 7 from 2002-12-31 to 2009-03-31:

Marginal note:Maximum loan size
  •  (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the outstanding loan amount in relation to the borrower is more than $250,000 or any prescribed lesser amount, where that amount has either been disclosed to the lender by the borrower or the lender has actual knowledge of it.

  • Marginal note:Meaning of outstanding loan amount

    (2) The outstanding loan amount referred to in subsection (1) is the aggregate principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, at the time the loan is made, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.