|
|
|
|
|
|
His Excellency the Governor General recommends to the House of
Commons the appropriation of public revenue under the circumstances,
in the manner and for the purposes set out in a measure entitled ``An Act
to increase the availability of financing for the establishment,
expansion, modernization and improvement of small businesses''.
|
|
|
|
|
|
|
|
This enactment replaces the Small Business Loans Act in order to
reform the Small Business Loans Program. The purpose of the Program
is to increase the availability of financing for the establishment,
expansion, modernization and improvement of businesses with gross
annual revenues of up to $5 million by allocating, between the Minister
and lenders, portions of eligible losses incurred by lenders in relation to
loans of up to $250,000 to such businesses for those purposes. The key
elements of the enactment are the following:
|
|
|
|
(a) it provides for the continuous operation of the Program subject
to a comprehensive program review every five years;
|
|
|
|
(b) it limits the Minister's aggregate contingent liability to $1.5
billion for each five-year period;
|
|
|
|
(c) it authorizes the Minister to conduct compliance audits and
examinations;
|
|
|
|
(d) it authorizes the establishment and operation of pilot projects to
determine whether the Program should be extended to include loans
to the voluntary sector and capital leases; and
|
|
|
|
(e) it reforms the offence and punishment provisions.
|
|
|
|
The Small Business Loans Act will continue to apply to loans made
before April 1, 1999 although certain provisions of the new legislation
with respect to fees and interim claim payments will also apply to those
loans.
|
|