Mr. Speaker, I always appreciate support when it is given from the other side of the floor and, therefore, do not have to shout recall.
The Canada small business financing act will do a number of things that are very important. It will guarantee lending on April 1, 1999 and continue to facilitate asset based debt financing to small and medium companies with annual sales of up to $5 million. Those are the small businesses in his riding and in my riding.
The government will continue to share the risks of loans to businesses by paying 85% of the loss incurred by lenders. These are measures that will be appreciated.
The government will pay claims on 90% of the first $250,000 of loans in a lender's account, 50% on the next $250,000 and 10% on the remaining loans.
These measures will be beneficial to those medium size enterprises.
The percentage of the cost of eligible capital assets accepted for financing would be 90%. This again will include so many of our businesses.
Interest ceilings remain at 3% above prime lending rates for variable rate loans or 3% above residential mortgage rates for fixed rate loans. These measures will benefit all of our constituents. Therefore it is essential that we support this bill and give our small and medium size businesses a break.