Teaching Old Dogs New Tricks – Changes To The Canada Small Business Financing Regulations

The Canada Small Business Financing Program ("CFBFP") was first introduced over 40 years ago by the Federal Government to provide small and medium sized businesses greater access to financing, through this government guaranteed loan program. When initially introduced, banks readily advanced funds under this program to businesses that would not otherwise qualify for financing. As time passed and banks gained experience in originating and administering these loans they become increasingly less attractive for banks to undertake primarily due to the underlying administrative burdens. The Federal Government has introduced changes that took effect April 1, 2014, to the CFBFP, which is now governed by the Canada Small Business Financing Act and the Canada Small Business Financing Regulations. The essence of the changes is to relieve many of the irritating administrative burdens under the CFBFP, the primary issue that deterred financial institutions from participating in and