Canada Small Business Financing Regulations

25.1 (1) Despite the fact that a lender has not satisfied the requirements with respect to appraisals set out in section 9 or subsection 16(2), the Minister must pay the lender the amount of any loss, calculated in accordance with subsection 38(7), sustained in respect of the loan if

• (a) the non-compliance was inadvertent; and

• (b) the lender provides the Minister with documentation that substantiates the value of the assets during the period of 180 days before the loan was approved by the lender or on the day the loan was approved.

(2) Subsection (1) does not apply to appraisals of real property or immovables.

(3) Despite the fact that the lender has not provided the documentation referred to in paragraph (1)(b), the Minister must pay the lender the amount of any loss, calculated in accordance with subsection 38(7), on the portion of the loan amount to which non-compliance does not relate.