22. Notwithstanding section 21, where a private lender has demanded repayment of a loan in respect of which insurance has been provided by the Minister pursuant to section 14, the amount payable to the private lender shall not exceed the lesser of

• (a) the amount of insurance in effect on the date of such demand; and

• (b) 90 per cent of the loss incurred by the private lender excluding any amount recovered or recoverable under the guarantee obtained by the private lender in accordance with subparagraph 14(3)(a)(i).

23. The Minister shall administer contributions in accordance with the provisions of this Part.

24. The Minister may make contributions to a business enterprise in respect of any of the following:

• (a) the costs of engaging the services of a qualified consultant to develop a proposal to qualify for a loan or loan insurance under these Regulations or contributions under paragraph (c) or (d);

• (b) the costs of engaging the services of a qualified consultant to identify new or improved products or to conduct product testing or market testing on such products;

• (c) the costs of development and design of a new or improved and technologically advanced product, process or service capability that offers good prospects for commercial exploitation and benefit to Canada, which development and design are scientifically and technically feasible but represent technical risk;

• (d) the costs of a project for the design of a new mass-produced durable product through an expansion of the industrial design program of the business enterprise where the industrial design activity is directed by a qualified industrial designer;

• (e) the costs of engaging the services of a qualified consultant to develop a market strategy or market feasibility study to exploit a project in respect of which a loan, loan insurance or contribution was made or authorized by the Minister under these Regulations;

• (f) the costs of engaging the services of a qualified consultant to undertake a study to determine the feasibility of implementing plans for a project to significantly enhance the productivity or efficiency of the project where

  • (i) the enhancement project involves a significant departure from the traditional productivity or efficiency practices of the business enterprise and only involves the existing available technology, and

  • (ii) there exists a potential for significant productivity or efficiency gains and a demonstrable uncertainty as to the benefits of the enhancement project; and

• (g) the costs of engaging the services of a qualified consultant to protect Her Majesty’s interest in respect of any loan, insurance or a contribution made by the Minister pursuant to these Regulations.

• 25. (1) Contributions made under section 24 shall be in an amount that is considered necessary to induce a business enterprise to undertake any of the matters described in that section without incurring significant economic hardship for the business enterprise.

• (2) Notwithstanding subsection (1), contributions made in respect of

  • (a) any of the matters described in paragraphs 24(a) to (f) shall not exceed 75 per cent of its costs to the business enterprise; and

  • (b) an interest described in paragraph 24(g) shall not exceed 100 per cent of its costs to the business enterprise.

• (3) Where the Minister makes a contribution to a business enterprise in respect of the costs referred to in paragraph 24(b), the business enterprise shall pay to Her Majesty a royalty of up to 5 per cent of the amount of any export sales of a new or improved product referred to in that paragraph, except that

  • (a) the aggregate of royalties shall not exceed the amount of the contribution; and

  • (b) no royalties are required to be paid in respect of sales made more than five years from the day the contribution is made to the business enterprise.