Canada Small Business Financing Regulations

25 If the non-compliance as described in any of paragraphs (a) to (e) was inadvertent, the Minister must pay to the lender the amount of any loss, calculated in accordance with subsection 38(7), on the portion of the loan amount to which the non-compliance does not relate:

• (a) the loan was made to finance a purchase or improvement that does not fall within the scope of a class of loan referred to in subsection 5(1) or that is not permitted by paragraph 6(a);

• (b) the conditions set out in subsection 5(3) were not satisfied in respect of a loan that included the cost of decontamination of real property or immovables;

• (c) the requirements with respect to appraisals set out in section 9 or subsection 16(2) were not satisfied in respect of the loan;

• (d) the requirements with respect to security set out in these Regulations were not satisfied in respect of the loan; or

• (e) the lender provided some but not all of the documentation required by subparagraph 38(4)(a)(i) in respect of a claim for the loss.