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Canada Small Business Financing Regulations (SOR/99-141)

Regulations are current to 2022-11-16 and last amended on 2022-07-04. Previous Versions

 Despite the fact that the primary security taken by the lender is not enforceable, the Minister must pay the lender the amount of any loss resulting from the loan, calculated in accordance with subsection 38(7), on the portion of the amount of principal outstanding on the loan to which the non-compliance relates if

  • (a) the non-compliance was inadvertent;

  • (b) the requirements set out in section 14 with respect to the validity and ranking of the security are complied with; and

  • (c) the lender provides the Minister with documentation that substantiates the following:

    • (i) the lender, or their agent or mandatary, performed, during the period beginning 30 days before the day on which the loan was approved and ending 90 days after the final disbursement under the loan agreement, an on-site or virtual visit of the premises where the borrower’s small business is carried on or about to be carried on, and

    • (ii) the lender, or their agent or mandatary, confirmed that the assets for which the loan under subsection 5(1) was approved were delivered to and, if required, installed at the premises where the borrower’s small business is carried on or about to be carried on at the time of the on-site visit.

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