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Canada Small Business Financing Regulations

Version of section 12 from 2014-04-01 to 2022-07-03:


 The maximum annual rate of interest payable in respect of a loan on the day on which the loan is made or renewed or on which the loan term is amended, or on which a document is signed that sets out the terms of the loan that is made or renewed or that sets out the amended loan term, must not exceed

  • (a) in the case of a floating rate loan, the aggregate of 3% and the prime lending rate that is in effect at that lender on each day of the loan term, beginning on the day on which the loan is made; and

  • (b) in the case of a fixed rate loan, the aggregate of 3% and

    • (i) the single family residential mortgage or hypothec rate in effect at that lender for the loan term, or

    • (ii) in the case of a loan term of more than five years if there is no single family residential mortgage or hypothec rate for that loan term, the five-year single family residential mortgage or hypothec rate.

  • SOR/2009-102, s. 12
  • SOR/2014-7, s. 9(F)

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