Finance committee  Clause 208 basically deals with maximum loan size. This clause amends subsection 7(1) of the Canada Small Business Financing Act to increase the maximum loan size to $1.15 million and to allow for the line of credit facility. It sets the maximum amounts to be prescribed for diffe

Finance committee  Clause 209 speaks to the coming into force of the amendments. Subclauses 205(2), 205(3) and 207(1) will come into force when the budget implementation act receives royal assent. The other clauses will come into force once regulatory changes go through. There's a regulatory packag

Finance committee  Yes, there is an interest rate, but that interest rate is going to be prescribed in the regulations. The maximum it could be is prime plus 5% or some lesser amount—this is just for the line of credit. On the loan side it's prime plus 3%, and of that 3% on the term loan side, 1.25

Finance committee  A number of changes are being proposed. I would say that all the feedback we've been getting from the financial institutions has been positive, and they are saying these measures will do more to help small businesses get access to financing. This is access to financing that would

Finance committee  Yes, that is correct.

Finance committee  Clause 207 is just a clarifying technical amendment to the program liability ceiling. The clause amends subsection 6(1) of the Canada Small Business Financing Act to better articulate the meaning of the program liability ceiling.

Finance committee  I'm sorry. There are two other subclauses in clause 207.

Finance committee  Yes. It's subclauses 207(2) and 207(3). This is where the lender liability limits get segregated and clarified for term loans and lines of credit. Subclause 207(2) separates the liability limit for term loans and the liability limit for lines of credit. Subclause 207(3) introdu

Finance committee  To answer your question, the $1-million maximum loan amount has been in place since 2015. It used to be $500,000, and it was increased to $1 million in 2015. That's primarily for real property loans, of which $350,000 is allowable for equipment and leasehold improvement purposes.

Finance committee  I would say a fair amount. Over the last several years the program has undertaken a statutory review. The last review period ended last year and there was a fairly elaborate review undertaken. That was informed by discussions with not only lenders but also borrowers. There were a

Finance committee  I am Steve Watton. I'm with ISED. I'm here to speak to you about clauses 205 to 209, which deal with enhancements to the Canada small business financing program. The amendments are designed primarily to help more small businesses get access to the types of financing they need, in

Finance committee  Yes, a small business can be an incorporated business, a sole proprietor or a partnership business. Actually, the vast majority of them are incorporated companies.

Finance committee  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

Finance committee  They were not necessarily impacted by COVID. It would be just small business owners who were looking to get access to financing that the banks weren't willing to give them: financing from conventional products. That may have been, or may not have been, COVID-related.

Finance committee  A small business going into its financial institution would be an eligible business under this program. If the financial institution would turn down that business in and of itself, they have us as an option to register that loan under our program.