1.1 (1) For the purposes of subsections 4(3) and 7(2) of the Act, borrowers are related when one borrower
(a) controls, directly or indirectly in any manner, the other borrower;
(b) is controlled, directly or indirectly in any manner, by the same person or group of persons as the other borrower;
(c) carries on their small business in partnership with the other borrower, which carries on another small business; or
(d) shares management services, administrative services, equipment, facilities or overhead expenses of the business with the other borrower, but is not in partnership with that borrower.
(2) [Repealed, SOR/2022-157, s. 2]
(3) For the purpose of subsection (1), control means to hold shares of a corporation to which are attached more than 50% of the votes that are necessary to elect a majority of its directors.
(4) Despite subsection (1), borrowers whose businesses are located at different premises are not related if neither borrower derives more than 25% of their actual or projected gross revenues from the other.
- SOR/2009-102, s. 2
- SOR/2022-157, s. 2
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