Before 1997, charitable, religious and non-profit organizations (NPOs) were not considered eligible borrowers because they were usually dedicated to promoting causes whose primary purpose was not financial or social gain. Since the definition of a “small business” does not exclude having no income, charitable and religious organizations can run it as a business.
When analyzing a particular transaction to assess whether the transaction involves “all” the assets of a going concern, lenders must consider the new proportion of total assets being sold, whether the sale will at some point change the character of the business, and whether the seller can retain its normal business units in lieu of the new assets being sold. Regs par.9(1)(b)
The term “guarantor” in the Civil Code of Quebec refers to a person, other than the new debtor, who takes a lien to discharge the debt of the borrower in the event that the debtor fails to repay his loan. (Equivalent to “guarantor” in common law) Regs s.19 and s. 20
Quebec Municipal Code Terms of a pledge offered by someone to satisfy, for all others, a portion of another person’s loans. (Equivalent to “guarantee” in the laws.) Regs s.19 and s. 20
Working capital costs may be increased up to $150,100,000 with a CSBF loan in accordance with the loan category described in section four. Step 1.4 above or with a line of credit approved for an amount not exceeding $150,100,000.
Note: Regardless of whether your business is in an agency relationship with an individual or group company (e.g. real estate agents and gas stations in a principal-agent relationship), this new gross profit is calculated as money that accrues to the business after deducting any revenue or other obligations that the business is required to pay under the principal-agent terms.
Such improvements, whether for the benefit of the overall improvement (e.g. a new roof, foundation or main heating system) or within the structure of the premises used by the business, qualify for financing through a CSBF loan and the 50% rule does not apply. However, changes made to the new part of the premises not used for the business’s operations are not eligible.
17.dos A report on the excellent diversity of funding (Regs s.34(1))
Inent Canada requires lenders to continue paying administration fees when the minister’s liability limit is reached. In doing so, a lender retains certain program benefits: The new minister’s liability to a single bank is increased during the five-year period through borrowings of additional CSBF funds, loan transfers from other banks with a lower risk of loss for the months, mergers of lenders, and purchases of other lenders. In particular, changes to the minister’s liability limit allow the new minister to pay subsequent losses incurred by lenders during that period. Failure to pay the administration fee will render a borrower ineligible for future claims during that five-year period.
Payment demand: If the default is not remedied and neither the bank nor the debtor needs to amend the loan agreement to remedy the default, the bank may send the debtor a payment demand and require him to meet the standards specified in the demand within a certain period of time.
Lenders do not require approval from the SBF Directorate to sell or retain assets pledged as defense assets or to begin a settlement requiring some of the persons to repay a loan. They must consider the costs arising from the admission or non-admission of the defense and the method of summarization chosen. Before incurring court costs to file an appeal, a lender must consider whether the activities in the proceedings are appropriate to file them. Before admitting an asset, the lender will determine whether the sale proceeds meet or exceed the minimum costs and determine the amount and legality of any consideration claims (e.g. government consideration claims).
25.dos.1 Withhold
- Within the $500,000 maximum for leasehold improvements and equipment listed above, a total of $150,100,000 may be used to finance intangible assets and working capital costs.
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- Existing identity finance (Reg. s.6(1)): Expenses or obligations that have been financed elsewhere in the past by the financial institution with a normal term loan or personal line of credit are not eligible. The latest direction represents a term mortgage created by the same financial institution as a mortgage with daily scheduled repayments. Link investments, a line of credit and possibly a good conditional sale agreement are not considered identity finance.
- Evidence of the name of a legal owner and share of the new debtor: Documentation from the third party is required to confirm the transfer of ownership. If assets financed by the loan are sold, the fact that the assets were offered for sale confirms ownership, even if there is no documentation to prove the sale, and the Minister will presume that a transfer of ownership has occurred.
- For intangible assets or working capital loans, a valuation may be carried out by an appraiser experienced in comparing similar assets, such as a chartered accountant or a recognized services valuer.
- In the case of a CSBF credit line, the new credit line will not regularly repay the remaining balance of a conventional credit line (see point 5.2);
- consult and you can find refund payments with Ounts
- The refund of your 10% fee may affect the outstanding balance of the registered loan.
