Guidelines

Section B: Registration, Administration and Reporting

This section provides lenders with procedures for CSBF loan registration, administration and reporting.

1 CSBF Loan Registration

In order for a loan to be registered under the CSBFA:

• the first disbursement on the loan must have been made;
• the registration request must be postmarked no later than 3 months after the date of the first disbursement of loan funds Regs ss.2(1); Bulletin – February 2000;
• the Loan Registration form (see Section E) must be signed by an authorized representative of the lender and by the borrower Regs ss.3(1);
• a cheque for the registration fee must accompany the form.

Note: The names of the guarantor(s) and/or the names of the shareholder(s) for a corporate borrower must now be shown on the loan registration form.
Regs par. 3(1)(a.1)

Note: A registration fee is only guaranteed under the CSBFA if it is registered as part of the loan.

1.1 Late Registration

If the failure to register a loan within 3 months from the date of first loan disbursement is inadvertent, the lender needs to explain the error and request a deadline extension. In such a situation, the 3-month registration period will be extended to 6 months.
Regs ss.2(2); Bulletin – February 2000

NOTE: Lenders should register CSBF loans as soon as the first disbursement is made. Lenders who delay registration until after the final disbursement will not receive an extension for this reason, since the late registration will not be considered inadvertent.
Bulletin – February 2000

1.2 Modification of Loan Classes and Amounts

Lenders should notify the CSBFP Directorate of any changes in the loan classes and/or amounts from the amounts originally submitted on the Loan Registration form.

In the event of a cost overrun (e.g. equipment proves more costly than anticipated or an essential component of the project has been overlooked), the loan amount may be increased without completing a new registration form by submitting a written request within one year after the date of the first disbursement of funds for the initial loan and by attesting that the following conditions are met:

• the lender details the new loan amount(s) by class of loan;
• the 2% registration fee related to the increase accompanies the request;
• the increase relates to the same project;
• the legal status of the borrower remains the same as on the initial loan registration;
• the loan is in good standing and all other terms and conditions of the Act and Regulations are met (e.g., maximum loan amount, security requirements; requirement to repay the first instalment of the loan principal and interest within one year; repayment period is not more than 10 years);
• the lender amends registered security to reflect the increased amount; and
• there are no modifications to the "Borrower's Acknowledgment and Consent" section of the original registration form.

Note: For loans made before April 1, 2009, the increase of a loan amount due to cost overrun, if requested by the lender, will be limited to the maximum loan amount of $250,000. A lender may wish to increase such loans, due to cost overruns, to the new maximum loan amount of $500,000 of which the maximum amount of $350,000 can be used to finance the purchase or improvement of equipment and the purchase of leasehold improvements. In such a situation, the lender will have to make a new loan and submit a new registration form for the increased amount.