Canada Small Business Financing Act

Marginal note:Program liability ceiling

• 6 (1) The Minister is not liable to make any payment to a lender in respect of a loss sustained by it as a result of a loan once the Minister’s aggregate contingent liability in respect of the aggregate principal amount of the loans made by all lenders and registered by the Minister during each consecutive five-year period, starting with the period beginning on April 1, 1999, exceeds $1.5 billion or any other amount that is provided by an appropriation Act or another Act of Parliament.

• Marginal note:Limitation of liability in respect of each lender

  (2) The liability of the Minister to make any payment to a lender in respect of losses sustained by it as a result of loans made by it and registered by the Minister during each consecutive five-year period, starting with the period beginning on April 1, 1999, is limited to the total of

  • (a) 90%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it during that period that does not exceed $250,000,

  • (b) 50%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it during that period that exceeds $250,000 but does not exceed $500,000,

  • (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and

  • (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.