Canada Small Business Financing Regulations

6 (1) A loan referred to in any of paragraphs 5(1)(a) to (e) may not be used to finance an expenditure or commitment that

• (a) arose more than 365 days before

  • (i) the day on which the loan is approved, in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), or

  • (ii) the day on which the line of credit is authorized, in the case of a loan referred to in paragraph 5(1)(e); or

• (b) was previously financed by a conventional loan by the same lender.

(2) The maximum loan term is

• (a) in the case of a loan referred to in any of paragraphs 5(1)(a) to (d), or in the case of a loan to finance the payment by the borrower of registration fees payable in respect of a loan referred to in any of paragraphs 5(1)(a) to (d), 15 years beginning on the day on which the first payment of principal and interest is due; and

• (b) in the case of a loan referred to in paragraph 5(1)(e), or in the case of a loan to finance the payment by the borrower of registration fees payable in respect of a loan referred to in paragraph 5(1)(e), five years beginning on the day on which the line of credit is opened.