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Where can I apply for a lease under the
Capital Leasing Pilot Project (CLPP)?
You may apply for a lease by contacting any of the participating lessors.
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Should I communicate with Industry
Canada for a lease?
The Canada Small Business Financing Program Directorate at
Industry Canada is available to provide you with information
related to the program. Industry Canada does not get involved in
the decision making process of lessors nor does it accept or
process lease applications.
CLPP is delivered by participating lessors on behalf of the
federal government. Lessors are required to apply the same care
and procedures in making a CSBF capital lease as they would for
conventional capital leases of similar amounts. Decisions
related to entering into a capital leases rest entirely with the
lessors.
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What businesses are eligible to apply
under CLPP?
Most for profit small and medium size businesses with gross
revenues or projected revenues of less than $5 million are
eligible to apply for leases under this program. Such businesses
can be corporations, sole prioprietors or partnerships.
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What is eligible for financing under
CLPP?
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How much can be financed under
CLPP?
Lessors could finance up to 100% of cost of equipment, defined
as the purchase price of equipment plus additional cost
necessary for its operation, excluding maintenance and training
costs.
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What is the maximum lease amount I can
access under CLPP?
The maximum lease amount a small or medium size business can
access under this program is $250,000.
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What are the costs related to
leases?
Registration Fee:
The registration fee is 2% of the total amount of the lease.
Yes, it can be financed and added to the total amount of the
lease provided that the maximum amount does not exceed $250,000.
Interest Rate:
The maximum interest rate that a lessor may charge to a lease is
the Government of Canada bond rate plus 13.25% for the term of
the lease.
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If the lessor rejects my business
proposal and does not approve my application for a lease under
CLPP, what can I do?
Lessors are required to apply the same due diligence procedures
for a CLPP as they would for a conventional capital lease and
the decision to lease rests entirely with them. However, you can
contact another participating lessor who may have different
criteria related to the granting of a lease.