Information for Lessors

Frequently Asked Questions

1. Can we obtain a list of participating lessors?
2. How is the registration deadline calculated?
3. Can an extension be granted for submitting a capital lease for registration beyond the 4-month deadline?
4. Can a lessor get a refund of the 2% registration fees?
5. How can I become an eligible lessor under the Capital Leasing Pilot Project (CLPP)?

6. What are the benefits of participating in CLPP?

1. Can we obtain a list of participating lessors?

   Yes. You can obtain the list by consulting the List of Lessors.

2. How is the registration deadline calculated?

   The 4-month registration deadline is calculated from the date the lease is entered into (date that the capital lease is signed by the lessee and the lessor).

   Reference: Reg., Sec. 11
   Guidelines: B, item 1

3. Can an extension be granted for submitting a capital lease for registration beyond the 4-month deadline?

   Yes. The 4-month registration deadline can be extended to a maximum of 6 months from the date the lease is entered into, if the lessor has inadvertently missed the deadline and provides a written explanation.

   Reference: Reg., Sec. 11(2)
   Guidelines: B, item 1.1

4. Can a lessor get a refund of the 2% registration fees?

   Yes. A partial refund of the registration fee may be authorized if the lessor has disbursed less than the full amount of the capital lease registered. A full refund of the registration fee may be authorized if the lessor determines the lease to be ineligible. The request for refund of registration fees must be submitted by the lessor within one year from the date the lease is entered into.

   Reference: Reg., Sec. 14(7)
   Guidelines: B, item 2.3

5. How can I become an eligible lessor under the Capital Leasing Pilot Project (CLPP)?

   To become a lessor, you must be:

   • a member of the Canadian Payment Association; or
   • a leasing company incorporated in Canada or a lease funder carrying on business in Canada with a place of business in Canada that:
     • maintains a rating of BBB or better issued by a Canada bond rating agency; or

     • participates in a securitization program approved by a Canadian bond rating agency.

   An organization may also be designated by the Minister as a lessor for the purposes of the CLPP as long as it meets the criteria listed in Part A, Paragraph 3 of the Lessor Designation Policy and provides the necessary documents outlined in Part B of the Policy.

   If you are interested in becoming a lessor, simply print, complete, then submit to Industry Canada pages 7 and 8 of the publication related to “An Invitation to Participate in Capital Leasing”.

6. What are the benefits of participating in CLPP?

   Participation in the CLPP allows eligible lessors to better manage the risk associated with leasing to small businesses.

   By sharing some of the risk with the Government of Canada, eligible lessors can broaden their opportunities for attracting clients and meeting the needs of emerging businesses.