Canada Small Business Financing Regulations

19 (1) A lender, in addition to the primary security referred to in section 14, may take one or more unsecured personal guarantees or suretyships for an amount of not more than the aggregate of

• (a) 25% of the original amount of the loan,

• (b) interest on any judgment against the guarantor or surety,

• (c) taxed costs for, or incidental to, the legal proceedings against the guarantor or surety, and

• (d) legal fees and disbursements — other than costs referred to in paragraph (c) — and other costs incurred by the lender for services rendered to it by persons other than its employees for the purpose of the legal proceedings against the guarantor or surety.

(2) If a lender takes more than one personal guarantee or suretyship, the guarantees or suretyships must state that the aggregate liability of the guarantors or sureties may not exceed the aggregate amount referred to in subsection (1).