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This enactment amends the Small Business Loans Act with the
objective of moving the small business loans program to full cost
recovery.
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The major elements of the enactment are as follows:
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(a) a reduction in the Minister's liability to pay a loss on any business
improvement loan from 90% to 85%, or such other percentage as is
fixed by the regulations, of the loss;
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(b) the establishment of an annual administration fee and a
restriction on the passing on of the fee to borrowers except through
interest rates;
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(c) the establishment of a claim processing fee; and
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(d) the granting of authority to make regulations respecting the
release of security taken for the repayment of any business
improvement loan.
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