Guidelines

Section B: Registration, Administration and Reporting

2 Registration and Administration Fee: Payment and Refund

2.1 Registration Fee

• the registration fee is 2% of the total amount of the CSBF loan for real property or immovables, leasehold improvements and equipment;
• the lender's cheque for the registration fee, payable to the Receiver General for Canada, must accompany the Loan Registration form. Cheques from borrowers are not accepted;
• a lender can finance the registration fee (See Section A, Item 4.4). Regs ss.4(1)

2.2 Administration Fee

• the annual administration fee of 1.25% is calculated on the end of month loan balances;
• administration fees must be paid on all loans including those in default, in realization process, and those for which an interim claim has been paid;
• this fee can be charged to the borrower only through the interest rate (See Section A, Item 6.2);
• this fee is payable within 2 months after the end of each quarter of the government fiscal year (i.e., April 1 to March 31 of the following year).
  Act s.12; Regs ss.4(2); Regs ss.4(6); Regs ss.4(9)

See Item 12.1 of this Section for reporting on and payment of the administration fee. See Section C, Item 4 for remedies for inadvertent non compliance of the requirement to pay administration fees.

2.3 Refund of Registration fee and/or Administration Fee

A written request for refund of registration and administration fees must be submitted by the lender (not the borrower) within one year of the date of the first disbursement of loan funds, as follows:

• If the total funds disbursed are less than the registered amount of the loan:
  • the lender will provide details of the revised amount of the loan, by loan class;
  • refund of the 2% fee will apply to the undisbursed portion of the registered loan, and;
  • upon refund, the undisbursed portion of the CSBF loan will be deducted from the program's loan records;
  Regs ss.4(10)(a); Bulletin – December 1999

• If the lender determines the loan is ineligible:
  • a full refund of registration and administration fees may be requested;
  • a full explanation why the loan is ineligible and proof that the administration fee was paid, are required, and;
  • upon refund, the entire amount of the loan will be deducted from the program's loan records.
  Regs ss.4(10)(b); Bulletin – December 1999