Document ID: chunk:federal_register_of_legislation:F2020C00896:reg:11
Version: federal_register_of_legislation:F2020C00896
Segment Type: reg
Provision Reference: reg 11
Character Range: 9768–11970

11  Extra preconditions for making small business drought loans
 (1) The Corporation must not make a small business drought loan to a drought‑affected small business unless:
 (a) the business is in financial need of a concessional loan; and
 (b) the business is assessed as financially viable, or as having sound prospects of a return to financial viability within 10 years; and
 (c) the business owes commercial debt; and
 (d) throughout the 6 months before the business applied for the loan, the business had fewer than 20 employees other than casual employees; and
 (e) the business is carried on by:
 (i) a sole trader covered by subsections (2) and (3); or
 (ii) a partnership whose partners include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same partner or different partners); or
 (iii) a trust whose beneficiaries or unit‑holders include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same beneficiary or unit‑holder or different ones); or
 (iv) a corporation (within the meaning of the Corporations Act 2001), other than a public company (within the meaning of that Act), whose members include a person covered by subsection (2) and a person covered by subsection (3) (whether those subsections cover the same member or different members); and
 (f) the entity carrying on the business is registered for tax purposes in Australia with an Australian Business Number (ABN) and registered under the A New Tax System (Goods and Services Tax) Act 1999; and
 (g) the entity carrying on the business is not subject to external administration or bankruptcy.
Note: The Board has the function of ensuring that the Corporation has procedures for review of decisions to make or refuse small business drought loans: see section 24.
 (2) This subsection covers a person who is an Australian citizen or permanent resident.
 (3) This subsection covers a person whose principal business pursuit (in terms of the majority of the person's own labour and income) is the drought‑affected small business.

Division 4—Determining terms and conditions of small business drought loans