Guidelines

Contents

• Introduction
• Section A: Making a CSBF Loan
  1. Business Eligibility
     • 1.1 Definition of Small Business
     • 1.2 Ineligible Small Business
     • 1.3 Eligible Small Business
  2. Maximum Loan Amount
  3. Borrower, Independent Small Business and Related Borrower
     • 3.1 Borrower
     • 3.2 Independent Small Business and Related Borrower
  4. Loan Classes
     • 4.1 Real Property or Immovables
     • 4.2 Leasehold Improvement
     • 4.3 Equipment
     • 4.4 Registration Fee
     • 4.5 Examples of Eligible and Ineligible Items for a CSBF Loan
  5. Eligible Amount of the Loan
     • 5.1 Eligible Expenditures
     • 5.2 Ineligible Expenditures
     • 5.3 Proof of Purchase and Proof of Payment
     • 5.4 Appraisal
  6. Terms of Loan, Rate of Interest and Other Fees and Charges
     • 6.1 Repayment Terms
     • 6.2 Rate of Interest
     • 6.3 Other Fees and Charges
  7. Security
     • 7.1 Primary Security
     • 7.2 Additional Security
     • 7.3 Guarantees or Suretyships
  8. Due Diligence
  9. Checklist
• Section B: Registration, Administration and Reporting
  1. CSBF Loan Registration
     • 1.1 Late Registration
     • 1.2 Modification of Loan Classes and Amounts
  2. Registration and Administration Fee: Payment and Refund
     • 2.1 Registration Fee
     • 2.2 Administration Fee
     • 2.3 Refund of Registration and/or Administration Fee
  3. Renewal and Amendment of Terms:
  4. Conversion of Fixed and Floating Interest Rates
  5. Prepayment
  6. Substitution and Release of Security
     • 6.1 Substitution
     • 6.2 Release Without Substitution or Replacement
     • 6.3 Postponement
  7. Change of Name of the Borrower
  8. Transfer of Loans Between Borrowers
  9. Transfer of Loans Between Lenders
     • 9.1 Transfer of Individual Loans
     • 9.2 Bulk Transfer of Loans
  10. Amalgamation of Lenders
  11. Discontinuance of lending business
  12. Reporting
      • 12.1 Administration Fee Payment and Report
      • 12.2 Outstanding Loan Amounts Report
  13. Audit or Examination
  14. Minister's Liability
  15. Offences and Punishment
• Section C: Realization and Claim Submission
  1. Default, Notice of Default and Demand for Repayment
     • 1.1 Default and Required Procedure
     • 1.2 Time Limitation for Claim Submission
  2. Realization
     • 2.1 Other Assets of the Business
     • 2.2 Guarantees or Suretyships (personal or corporate)
     • 2.3 Liability of Sole Proprietors and Partners
     • 2.4 Compromise Settlements
  3. Sharing of Realization Proceeds and Costs
  4. Non-compliance Remedies
     • 4.1 Inadvertent Errors
     • 4.2 Uncorrectable Non-Compliances
  5. Submitting a Claim for Loss
     • 5.1 Regular Claim for Loss
     • 5.2 Interim Claim for Loss
     • 5.3 Incremental Claim for Loss
     • 5.4 Appeal
     • 5.5 Missing Information and Documentation
  6. Establishing the Amount of the Claim for Loss
     • 6.1 Calculating the loan loss
     • 6.2 Determining the Eligible Loan Amount for Claims
     • 6.3 Factors Affecting the Amount Payable
  7. Documenting Claim for Loss Submissions
  8. Subrogation and Post-claim Receipts of Proceeds
• Section D: Annex, Forms and Glossary
• Excerpt from the Income Tax Act
• Example of Minister's Liability Calculation
• Glossary