Canada Small Business Financing Regulations

4 (1) The registration fee in respect of a loan referred to in any of paragraphs 5(1)(a) to (c) is 2% of the amount of the loan.

(2) The annual administration fee for a loan for a year is the amount calculated at the annual rate of 1.25% applied to the end-of-month balances of the loan during the year.

(3) For the year beginning on April 1, 1999 and ending on March 31, 2000, the annual administration fee is payable on or before June 1, 2000.

(4) For the year beginning on April 1, 2000 and ending on March 31, 2001, the annual administration fee is payable quarterly within two months after the end of each quarter of the year, and the payments for each quarter except the last quarter of the year may be made on the basis of an estimate of the amount payable.

(5) The lender must pay any deficiency or claim any overpayment for the period beginning on April 1, 2000 and ending on March 31, 2001 on or before June 1, 2001.

(6) For each year beginning after March 31, 2001, the annual administration fee is payable quarterly, within two months after the end of each quarter.

(7) With each payment made under subsection (6), the lender must submit a statement that substantiates the basis on which the payment was calculated.

(8) Notwithstanding subsection (7), if the lender is unable to provide the statements required by that subsection in respect of a year, the Minister must notify the lender

• (a) that for that year, the lender may make the payments under subsection (6), except the payment for the last quarter of the year, on the basis of estimates of the amounts payable; and

• (b) that the lender must submit for that year a statement under subsection (9) rather than the statements required by subsection (7).

(9) On or before June 1 following a year in respect of which a lender makes payments under subsection (8), the lender must pay any deficiency for the year, or claim any overpayment for the year, and provide a statement that substantiates the basis on which the amount of the annual administration fee for the year was calculated.

(10) On application by a lender, made within one year after the loan is made, the Minister must

• (a) where the lender has disbursed less than the full amount of the loan registered, refund to the lender that portion of the registration fee that is attributable to the portion of the loan that was not disbursed and subtract the amount of the undisbursed portion from the amount of the loan registered; or

• (b) where the lender determines that the loan is not in compliance with the requirements of the Act and these Regulations, refund to the lender the registration fee and the annual administration fee and delete the entire amount of the loan registered.