Canada Small Business Financing Regulations

38.1 (1) If the Minister has paid the lender the amount of any loss, calculated in accordance with subsection 38(7), the lender may, within the applicable period set out below, submit an additional claim for part of the previously unclaimed loss if the failure to respect the deadline for claiming that part of the loss was inadvertent:

• (a) in the case where the lender has notified the Minister of recovery of 100% of the compromise settlement, guarantee or suretyship under subsection 39(4), within 12 months after the day of notification;

• (b) in the case where the lender has submitted a final claim under subsection 39(5) after an interim claim, within 12 months after the day on which the claim was made final; and

• (c) in any other case, within 12 months after the date of expiry of the period specified in subsection 38(2) or (3), as the case may be.

(2) An additional claim for part of the loss arising from any amount paid as a result of a claim submitted under a deemed trust by the Canada Revenue Agency or by any provincial department of revenue may be submitted after the period specified in subsection (1).

(3) An additional claim for part of the loss must be certified by the lender and be accompanied

• (a) in the case of an additional claim submitted under subsection (1) in respect of a loan referred to in any of paragraphs 5(1)(a) to (d), by documentation that substantiates

  • (i) the cost and proof of payment of the purchase or improvement that was financed by the loan in an amount equal to or greater than 75% of the principal outstanding on the loan, and

  • (ii) if appropriate, the costs referred to in paragraphs 38(7)(c) and (d) that were not previously claimed;

• (a.1) in the case of an additional claim submitted under subsection (1) in respect of a loan referred to in paragraph 5(1)(e),

  • (i) by an attestation signed by the borrower stating that

    • (A) the line of credit will only be used to pay for working capital costs, and

    • (B) the working capital costs paid through the line of credit were not incurred more than 365 days before the line of credit was authorized, and

  • (ii) if appropriate, by documentation that substantiates the costs referred to in paragraphs 38(7)(c) and (d) that were not previously claimed; and

• (b) in the case of an additional claim submitted under subsection (2), by documentation that substantiates

  • (i) the amount paid as a result of a claim submitted under a deemed trust by the Canada Revenue Agency or by any provincial department of revenue, and

  • (ii) if appropriate, the costs referred to in paragraphs 38(7)(c) and (d) that were not previously claimed.