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Canada Small Business Financing Regulations

Version of section 6 from 2022-07-04 to 2024-02-06:

  •  (1) A loan referred to in any of paragraphs 5(1)(a) to (e) may not be used to finance an expenditure or commitment that

    • (a) arose more than 365 days before

      • (i) the day on which the loan is approved, in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), or

      • (ii) the day on which the line of credit is authorized, in the case of a loan referred to in paragraph 5(1)(e); or

    • (b) was previously financed by a conventional loan by the same lender.

  • (2) The maximum loan term is

    • (a) in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), or in the case of a loan to finance the payment by the borrower of registration fees payable in respect of a loan referred to in any of paragraphs 5(1)(a) to (d), 15 years beginning on the day on which the first payment of principal and interest is due; and

    • (b) in the case of a loan referred to in paragraph 5(1)(e), or in the case of a loan to finance the payment by the borrower of registration fees payable in respect of a loan referred to in paragraph 5(1)(e), five years beginning on the day on which the line of credit is opened.

  • SOR/2009-102, s. 6
  • SOR/2016-18, s. 2
  • SOR/2022-157, s. 7

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