4Definitions

4 Definitions

Note: A number of expressions used in this instrument are defined in the Act, including the following:

(a) Board;
(b) Corporation;
(c) Desertification Convention;
(d) responsible Ministers.

In this instrument:

Act means the Regional Investment Corporation Act 2018.

affected area has the same meaning as in the Desertification Convention.

commercial debt means debt established on commercial terms, at commercial interest rates.

drought‑affected small business has the meaning given by section 5.

maximum loan amount, for a drought‑affected small business, means the lesser of the following:

(a) an amount that is equal to 50% of the existing commercial debt of the business;
(b) $500,000.

program means the Small Business Drought Loans Program prescribed by section 6.

small business drought loan means a loan by the Corporation to a drought‑affected small business, of not more than the maximum loan amount for the business, for the purpose of providing working capital for the business or refinancing existing commercial debt owed by the business, on terms and conditions that include the following:

(a) the term of the loan is 10 years;
(b) only interest is payable for the first 5 years of the loan;
(d) the business must pay interest and repay principal over the final 5 years of the loan;
(e) the principal of the loan may be repaid (wholly or partly) at any time during the term of the loan without penalty.

Note: Part 2 of the Regional Investment Corporation Operating Mandate Direction 2018 deals with the interest rates applying to the loan.