Canada Small Business Financing Regulations

4 (1) The registration fee is

• (a) in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), 2% of the amount of the loan; and

• (b) in the case of a loan referred to in paragraph 5(1)(e), 2% of the authorized amount of the line of credit.

(1.1) If the borrower and the lender renew a loan referred to in paragraph 5(1)(e) within five years after the day on which the line of credit is opened, the lender must pay an additional registration fee of 2% of the renewed authorized amount.

(1.2) If the borrower and the lender agree to an increase in the authorized amount of a loan referred to in paragraph 5(1)(e), the lender must pay a registration fee of 2% of the increase in the authorized amount.

(2) The annual administration fee is payable quarterly within two months after the end of each quarter and is calculated at the annual rate of 1.25% applied

• (a) in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), to the end-of-month balances of the loan during the year; and

• (b) in the case of a loan referred to in paragraph 5(1)(e), to the daily outstanding amount for the line of credit for each month during the year.

(3) to (6) [Repealed, SOR/2009-102, s. 4]

(7) With each payment made under subsection (2), 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 (2), 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 and provide a statement that indicates 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 day on which a loan referred to in any of paragraphs 5(1)(a) to (d) 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.

(11) On application by a lender, made within one year after the day on which a loan referred to in paragraph 5(1)(e) is opened, the Minister must

• (a) where the lender has made available less than the 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 made available and subtract the amount of the loan that was not made available 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 authorized amount of the loan registered.