Indian Economic Development Direct Loan Order — 4
4 (1) The Minister may enter into a direct loan agreement with an applicant where the Minister is satisfied that (a) the direct loan is required to finance a business enterprise that will or may contribute to the economic development of Indians or to provide equity in a business enterprise that will or may contribute to the economic development of Indians; (b) the applicant, (i) in the case of a business enterprise other than the business of a profession, is unable to obtain the required financing on reasonable terms and conditions except under this Order, or (ii) in the case of the business of a profession, is unable to obtain a loan, except under this Order, by reason only that he is prevented by section 89 of the Indian Act from providing satisfactory security; (c) the direct loan is not for the purpose of refinancing an existing indebtedness except where the refinancing (i) is incidental to the main purpose of the direct loan, (ii) in the opinion of the Minister, improves the security to be obtained by the Minister in respect of the direct loan, (iii) in the case of an existing direct loan or a direct loan made under this Order, is, in the opinion of the Minister, desirable, or (iv) is approved by the Minister of Finance; (d) the aggregate of (i) the principal amount of the direct loan, and (ii) the amounts outstanding in respect of all direct loans does not exceed the total amount authorized by any Act to be outstanding from the Account at the time the direct loan was made; (e) where the aggregate of (i) the principal amount of the direct loan, (ii) the amount outstanding and the undisbursed amount in respect of all other direct loans made pursuant to Vote L53b of Appropriation Act No. 1, 1970 , (iii) the amount outstanding and the undisbursed amount of all guaranteed loans made pursuant to Vote L53b of Appropriation Act No. 1, 1970 , (iv) grants, contributions or other payments made or authorized by the Minister for the purposes of Indian economic development, (v) the amount outstanding and the undisbursed amount in respect of all loans, grants, contributions and development incentives made under statutory authority vested in the Minister of Regional Economic Expansion, and (vi) loans made or guaranteed under statutory authority by any federal Department, Crown Corporation or Agency to or on behalf of the applicant or in respect of the business enterprise for the purpose of which the direct loan is required exceeds $500,000 or may, in the opinion of the Minister, be reasonably expected to exceed $500,000, the direct loan has been approved by the Treasury Board; and (f) the applicant is able to contribute from his own assets at least 20 per cent of the estimated cost of the entire business enterprise for which the direct loan is to be made. (2) The Minister may enter into a direct loan agreement with an applicant who is unable to make the contribution specified in paragraph (1)(f) if (a) the Minister is satisfied that the conditions set out in paragraphs (1)(a) to (e) have been met; (b) the applicant is an Indian, a group of Indians, an Indian band or a corporation controlled by one or more Indians; and (c) the direct loan is, in the opinion of the Minister, warranted by the circumstances.