5Loan guarantees by the Commonwealth

5 Loan guarantees by the Commonwealth

(1) The Minister may, on behalf of the Commonwealth, grant a guarantee to a financial institution in connection with loans made, or to be made, by the financial institution to SME entities. (2) The Minister must not grant a guarantee unless: (a) the Minister is satisfied that granting the guarantee is likely to assist in dealing with the economic impacts of the Coronavirus known as COVID‑19; and (b) the guarantee is in connection with loans made, or to be made, by a financial institution that is a constitutional corporation. (3) The grant of a guarantee must be in accordance with any requirements prescribed by the legislative rules. (4) For the purposes of the application of this section to a loan made by a financial institution, it is immaterial whether the loan was made before, at or after the commencement of this section.