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Canada Small Business Financing Act (S.C. 1998, c. 36)

Act current to 2024-03-06 and last amended on 2021-06-29. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2021, c. 23, s. 204(1)

      • 204 (1) The definition loan in section 2 of the Canada Small Business Financing Act is replaced by the following:

        loan

        loan means a loan, including a line of credit, that meets the conditions set out in subsection 4(1) and is made to a borrower that meets the criteria set out in subsection 4(2). (prêt)

  • — 2021, c. 23, s. 205

      • 205 (1) Subsection 4(2) of the Act is amended by striking out “and” at the end of paragraph (c) and by replacing paragraph (d) with the following:

        • (d) in the case of a loan made after June 22, 2015 but before the day on which paragraph (e) comes into force, the outstanding loan amount in relation to the borrower does not exceed $1,000,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner; and

        • (e) in the case of a loan made on or after the day on which this paragraph comes into force, the outstanding loan amount in relation to the borrower does not exceed $1,150,000 or any prescribed lesser amount, of which maximum amounts may be prescribed for a loan other than a line of credit, a line of credit and prescribed classes of loans.

      • (2) Subsection 4(3) of the Act is replaced by the following:

        • Meaning of outstanding loan amount

          (3) The outstanding loan amount referred to in any of paragraphs (2)(b) to (e) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.

  • — 2021, c. 23, s. 206(2)

      • 206 (2) Subsection 6(2) of the Act is replaced by the following:

        • Limitation of liability in respect of each lender — loans other than lines of credit

          (2) The liability of the Minister to make any payment to a lender in respect of losses sustained by it as a result of loans, other than lines of credit, made by it and registered by the Minister during each consecutive five-year period, starting with the period beginning on April 1, 1999, is limited to the total of

          • (a) 90%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans — other than lines of credit — made by it during that period that does not exceed $250,000,

          • (b) 50%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans — other than lines of credit — made by it during that period that exceeds $250,000 but does not exceed $500,000,

          • (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans — other than lines of credit — made by it before April 1, 2009 that exceeds $500,000, and

          • (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans — other than lines of credit — made by it after March 31, 2009 that exceeds $500,000.

        • Limitation of liability in respect of each lender — lines of credit

          (3) The liability of the Minister to make any payment to a lender in respect of losses sustained by it as a result of lines of credit authorized by it and registered by the Minister during each consecutive five-year period, starting with the period beginning on April 1, 2019, is limited to the total of 15%, or any prescribed lesser percentage, of the aggregate amount of the lines of credit authorized by it.

  • — 2021, c. 23, s. 207

    • 207 Subsection 7(1) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

      • (c) in the case of a loan made after June 22, 2015 but before the day on which paragraph (d) comes into force, $1,000,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner; and

      • (d) in the case of a loan made on or after the day on which this paragraph comes into force, $1,150,000 or any prescribed lesser amount, of which maximum amounts may be prescribed for a loan other than a line of credit, a line of credit and prescribed classes of loans.


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