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Guidelines

Section A: Making a CSBF Loan

This section outlines the procedures lenders are to follow in making CSBF loans under the Act and Regulations. Lenders are expected to make CSBF loans with the same care as in the conduct of their ordinary business.

Lenders may find the decision table below useful.

1. Is the business eligible? (Section A, Item 1)
No ►
Finance conventionally
Yes ▼
 
 
2. Is the potential borrower eligible? (Section A, Item 3.1).
No ►
Finance conventionally
Yes ▼
 
 
3. Is the potential borrower related to other CSBF loan borrowers? (Section A, Item 3.2)
No ►
Maximum available loan is $500,000 (Section A, Item 2)
Yes ▼
 
 
4. Does the potential borrower pass the independent small business test? (Section A, Item 3.2.1)
No ►
Maximum loan is reduced by aggregate outstanding loans to related borrowers.
Yes ▼
 
 
5. Will the loan finance eligible purpose(s)? (Section A, Item 4)
No ►
Finance conventionally
Yes ▼
 
 
6. Is the maximum loan $500,000 or less, including amounts outstanding to related borrowers? (Section A, Item 2)
No ►
Reduce loan amount
Yes ▼
 
 
7. Is the maximum loan amount 90 percent or less of eligible assets? (Section A, Item 5)
No ►
Amend loan amount
Yes ▼
 
 
8. Do the repayment terms, interest rate, charges and fees comply? (Section A, Item 6)
No ►
Amend terms and conditions
Yes ▼
 
 
9. Do the security and documentation meet program requirements? (Section A, Item 7)
No ►
Correct security and/or documentation defects
Yes ▼
 
 
Register the loan with the directorate
 
 
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