Canada Small Business Financing Regulations

12 The maximum annual rate of interest payable in respect of a loan on the day on which the loan is made or renewed or on which the loan term is amended, or on which a document is signed that sets out the terms of the loan that is made or renewed or that sets out the amended loan term, must not exceed

• (a) in the case of a floating rate loan, the aggregate of 3% and the prime lending rate that is in effect at that lender on each day of the loan term, beginning on the day on which the loan is made; and

• (b) in the case of a fixed rate loan, the aggregate of 3% and

  • (i) the single family residential mortgage or hypothec rate in effect at that lender for the loan term, or

  • (ii) in the case of a loan term of more than five years if there is no single family residential mortgage or hypothec rate for that loan term, the five-year single family residential mortgage or hypothec rate.