- Regulations Amending the Canada Small Business Financing Regulations
- Amendments to Canada Business Corporations Regulations related to the Individual with Significant Control (ISC) Register
- Amendments to Canada Business Corporations Regulations related to well-being and remuneration as a result of Bill C-97
Regulations Amending the Canada Small Business Financing Regulations
Enabling act(s)
Canada Small Business Financing Act
Description
Regulatory amendments will be made to make enhancements to the Canada Small Business Financing Program (CSBFP), which were announced in Budget 2021. The amendments will include expanding eligible loan classes to include intangible assets and start-up costs, setting the parameters of a new line of credit product, increasing the maximum loan amount from $350,000 to $500,000 and coverage period from 10 to 15 years for equipment and leasehold improvement loans, and a small number of technical changes to reduce administrative burden. The objectives of these changes are to modernize the CSBFP in order to better help small businesses access the type and amount of financing they need in the digital economy and to help Canadian businesses recover following the COVID-19 pandemic, particularly as federal support programs wind down.
Regulatory cooperation efforts (domestic and international)
The proposal is not related to either domestic or international regulatory cooperation efforts.
Potential impacts on Canadians, including businesses
The amendments are expected to be well-received by Canadian small businesses and financial institutions as they will improve access to small business financing by allowing for more flexible financing options and larger lending amounts under the CSBFP. There are some costs associated with the amendments as borrowers pay interest and a one-time registration fee on program loans and financial institutions pay an annual administration fee on outstanding loan amounts and cover 15 percent of losses in the event of default. However, these are not new costs and are currently applied to program loans.
Consultations
Consultations with stakeholders were conducted as part of the CSBFP Evaluation Report (2019) and the Canada Small Business Financing Act Comprehensive Review Report (2014–2019). Program stakeholders, including representatives from financial institutions and small businesses, expressed the need for enhancements to the CSBFP, including higher maximum loan amounts, expanded loan classes, and a flexible financing product (e.g. line of credit) for short-term needs.
Department officials held additional consultations with financial institution representatives in May 2021 to discuss the parameters of the new line of credit product.
The proposed regulations will be pre-published in the Canada Gazette, Part I for a 30 day comment period to provide stakeholders and the Canadian public an opportunity to review the proposal and provide feedback.Further information
Canada Small Business Financing Act Comprehensive Review Report (2014–2019)
CSBFP Evaluation Report (2019)
Departmental contact information
Nathalie Poirier-Mizon
Director, Small Business Financing Directorate, Small Business Branch
Innovation, Science and Economic Development Canada / Government of Canada
nathalie.poirier-mizon@ised-isde.gc.ca
Date the regulatory initiative was first included in the Forward Regulatory Plan
Although this is a new entry into the Forward Regulatory Plan, work to advance regulatory amendments to the CSBFP announced in Budget 2021 has been underway since June 2021.
Amendments to Canada Business Corporations Regulations related to the Individual with Significant Control (ISC) Register
Enabling act(s)
Canada Business Corporations Act
Description
The objective of the amendments is to bring further clarity to the ISC regime. Specifically, to respond to the feedback received since the coming into force of the provisions, ISED is considering using the regulatory authority set out in the Canada Business Corporations Act which includes:
- prescribing classes of corporations that are not subject to the requirements to create and maintain an ISC Register;
- prescribing steps to be taken if a corporation is unable to identify any individuals with significant control over the corporation; and
- prescribing steps to be taken by a corporation for the purposes of updating the ISC Register.
Regulatory cooperation efforts (domestic and international)
Increasing corporate transparency has been an ongoing international concern. In recent years, many nations have committed to beneficial owner transparency under: the Financial Action Task Force (FATF) of the OECD; the Global Forum on Transparency and Exchange of Information for Tax Purposes; and various G8 agreements.
In 2017, federal, provincial and territorial Finance Ministers in Canada formally agreed to strengthen beneficial transparency, and have since committed to pursuing amendments to their corporate statutes to require corporations to hold accurate and up-to-date information on beneficial owners that would be available to relevant authorities.
Potential impacts on Canadians, including businesses
The amendments are expected to be well received in the corporate community. They will bring further clarity to the obligations as they are currently set out in the Canada Business Corporations Act. This should also result in a more consistent application of the requirements.
Consultations
A consultation paper was released in March 2020 for a 90-day consultation period. A notice about the consultation was sent to stakeholders and was posted on ISED's website.
The results of the consultations are being analyzed and proposed regulations are being considered. There will be further opportunity for stakeholder comment if the proposed regulations are published in the Canada Gazette Part 1.
Further information
Information will be posted on ISED's website once available.
Departmental contact information
Corporations Canada
If you wish to contact the department, please use the following:
By phone: 1-866-333-5556
By email: ic.corporationscanada.ic@ised-isde.ca
Date the regulatory initiative was first included in the Forward Regulatory Plan
April 2021
Amendments to Canada Business Corporations Regulations related to well-being and remuneration as a result of Bill C-97
Enabling act(s)
Canada Business Corporations Act (CBCA)
Description
Bill C-97 Budget Implementation Act, 2019, No. 1, received Royal Assent on June 21, 2019 and made amendments to the CBCA including new disclosure requirements.
The amendments include the following:
- the requirement for prescribed corporations to present their approach on remuneration of directors and senior management to shareholders each year, conduct a non-binding vote on it, and disclose the results;
- the requirement for prescribed corporations to place before shareholders, at every annual meeting, information relating to the recovery of incentive benefits or other benefits paid to directors or senior management; and
- the requirement for prescribed corporations to annually provide shareholders with information regarding the well-being of employees, retirees and pensioners.
There are specifics of each of these requirements that need to be set out in the regulations in order for the provisions to come into force.
Regulatory cooperation efforts (domestic and international)
The proposal is unrelated to a work plan or commitment under a formal regulatory cooperation forum.
Potential impacts on Canadians, including businesses
The amendments are intended to strengthen corporate social responsibility and increase transparency and accountability.
There will be impacts on those corporations that are required to disclose information on well-being and conduct say-on-pay votes. The consultations and analysis of the potential amendments will include potential impacts.
Consultations
A consultation paper was released in January 2021 for a 60-day consultation period. A notice about the consultation was sent to stakeholders and was posted on ISED's website.
The results of the consultations are being analyzed and proposed regulations are being considered. There will be further opportunity for stakeholder comment if the proposed regulations are published in the Canada Gazette Part 1.
Further information
Information will be posted on ISED's website once available.
Departmental contact information
Corporations Canada
If you wish to contact the department, please use the following:
By phone: 1-866-333-5556
By email: ic.corporationscanada.ic@ised-isde.ca
Date the regulatory initiative was first included in the Forward Regulatory Plan
April 2021
Consult ISED's acts and regulations web page for:
- a list of acts and regulations administered by [department name]
- further information on ISED's implementation of government-wide regulatory management initiatives
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