Special Notice

Capital Leasing Pilot Project

The five-year Capital Leasing Pilot Project (CLPP) expired on March 31, 2007.

Capital leases registered with IC under the provisions of the Canada Small Business Financing (Establishment and Operation of Capital Leasing Pilot Project) Regulations (the Regulations) will continue to be covered until the end of the term of the capital lease as long as the requirements of the Canada Small Business Financing Act (CSBFA) and the regulations have been met.

Among other things, lessors must ensure that:

• Capital leases entered into on or before March 31st, 2007 are registered with IC within four months from the date they are entered into (the four months may be extended by two months for inadvertent non-compliance).
• The quarterly payment of the administration fees continues to be remitted to IC on the balance of all leases outstanding until the end of their term.
• The annual outstanding lease balance report continues to be submitted to IC by May 31 of each year.

Provided the above and other requirements of the CSBFA and the Regulations are complied with, all rights and obligations will continue, on registered capital leases, as per the CSBFA and the Regulations, and the Minister of Industry will continue to pay claims on leases registered under the CLPP.

For more information, please contact:

Joffré Osborne
Manager, Client and Partner Relations
Canada Small Business Financing Program
Telephone: 613-948-6446
Facsimile: 613-952-0290
Email: joffre.osborne@ic.gc.ca