Bulletin – April 2011

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Printable version: Common Omissions in the CSBFP Registration and Claim for Loss Forms (PDF Format 50 KB, 2 pages)

Common Omissions in the CSBFP Registration and Claim for Loss Forms

One of the topics covered in the July 2009 Bulletin was the omissions that occur when completing registration forms. While there has been a significant improvement, registrations continue to be submitted lacking information. Some problems are also prevalent in the claim for loss forms. This Bulletin details some of the most common omissions in both forms.

Registration Form

  • Box 3 lender's loan number: This number is important in order to reconcile the outstanding loan balance on an annual basis.
  • Box 7 business number: Lenders can check the "To follow" box for the Business number assigned by the Canada Revenue Agency. Lenders are required to send the Business number to the CSBF Program as soon as possible.
  • Box 8 names of shareholders: If the borrower is a corporation, the name(s) of the shareholder(s) must be provided.
  • Box 17 date of first disbursement: A loan can be registered within three months after the first disbursement date. The registration form should not be submitted if the loan has not been disbursed.
  • Borrower's / Lender's acknowledgement section: It is common that the borrower's initials are missing in this section. It is also important to print the name of the person who signs the borrower's or lender's acknowledgement.

By providing the above-noted information, the loan will be registered without delay. It reduces the need and the time involved in follow-ups with the lender for the missing information.

Claim for Loss Form

  • Box 6: The address where the business is located is required, not the head office address of the business.
  • Box 9: When a summary of eligible costs is used in lieu of box 9, the summary document must be attached to the claim for loss form. Otherwise the data cannot be entered into our data system.
  • Box 13: This is the date of first disbursement of the loan. It is not the date of the first loan payment by the borrower.
  • Box 16: In the status code and net worth codes, lenders do provide information on the guarantor and the security. However, they must also include the complete information on the borrower (sole proprietor, partners or corporation).
  • Box 17: The status code should reflect the status at the time when the claim is submitted, not the anticipated result. For example, for interim claims, "good possibility of recovery" should be used instead of "compromise settlement". In cases of compromise settlements, please use status code 3 (Compromise settlement) instead of status code 4 (debt extinguished).
  • Boxes 20 and 21: Indicate the actual rate as of the date in each Box (e.g., 6.75%) and not the way it's calculated (e.g., prime + 3%).
  • Box 25: Please include the principal outstanding on the total of the CSBFP loans and any conventional loans made to the borrower.
  • Box 27: Please refer to the explanation for this box as to how costs should be prorated on page 5 of the claim for loss form.
  • Box 32: The date should be provided only if the lender is submitting an interim claim and a holdback is entered in Box 31. The date entered should be the date the lender expects to be able to submit the final claim. This would be when the realization of the personal guarantee and/or personal liability or a compromise settlement with the borrower has been finalized.

The processing of a claim will be expedited if the correct and complete information is provided as outlined above.

We welcome your comments and feedback on any points raised in this Bulletin. Please feel free to contact us.

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