Bill C-53

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	SUMMARY
	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.
	EXPLANATORY NOTE
	Bank Act
	Clause 21: The relevant portion of subsection 427(1) reads as follows:
	427. (1) A bank may lend money and make advances
	. . .
	(m) to any aquaculturist for
	. . .
	(v) any works for the improvement or development of an aquaculture operation for which a business improvement loan, as defined in the Small Business Loans Act, or a farm improvement loan, as defined in the Farm Improvement Loans Act, may be made,
	on the security of aquacultural equipment or aquacultural implements, but security taken under this paragraph is not effective in respect of aquacultural equipment or aquacultural implements that, at the time the security is taken, by any statutory law that is then in force, are exempt from seizure under writs of execution and the aquaculturist is prevented from giving as security for money lent to the aquaculturist,