Canada Small Business Financing Regulations

29 (1) A lender may assign a loan to another lender at the request of the borrower if the Minister’s liability under subsection 6(2) of the Act in relation to the remaining loans of the transferor does not, as a result of the transfer, exceed the amount already paid by the Minister to the transferor.

(2) The transferee must notify the Minister of the transfer in the form referred to in subsection (3). The Minister must determine whether the requirements set out in subsection (1) have been met and must notify both lenders of the determination.

(3) A form must be signed by the borrower and by both lenders and must include the loan registration number and the borrower’s acknowledgement that it has requested the transfer.

(4) The Minister’s liability under the Act continues in respect of any loss sustained by the transferee in respect of the loan.