Subclauses 206(1) and 206(2) basically deal with borrower eligibility, or who's eligible for the loans. Subclause 206(2) is a consequential amendment.
Subclause 206(1) amends subsection 4(2) of the Canada Small Business Financing Act to specify that in order to be eligible for a loan under the program, borrowers must have less than $1.15 million in outstanding loans. It was previously $1 million and is being increased as a result of the introduction of the line of credit facility.
Subclause 206(2) is basically a consequential amendment to the meaning of what's considered an outstanding loan amount. It just amends subsection 4(3) to specify that the meaning of the outstanding loan amount is the aggregate of the proposed loan and any principal amount that's already outstanding on previous loans, taking into consideration, of course, the higher threshold of $1.15 million.