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

Act current to 2024-05-01 and last amended on 2022-07-04. Previous Versions

Marginal note:Program liability ceiling

  •  (1) The Minister is not liable to make any payment to a lender in respect of a loss sustained by it as a result of a loan made and registered after the Minister’s aggregate contingent liability in respect of the aggregate amount of the loans made by all lenders and registered by the Minister during each consecutive five-year period, starting with the period beginning on April 1, 1999, has exceeded $1.5 billion or any other amount that is provided by an appropriation Act or another Act of Parliament.

  • Marginal note: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.

  • Marginal note: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.


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