5What is a drought‑affected small business?

5 What is a drought‑affected small business?

(1) A business is a drought‑affected small business if all the requirements in this section are met in relation to the business.

Note: Extra conditions must be met for a loan to be made to the business under the Small Business Drought Loans program: see Division 3 of Part 2.

Substantial part of turnover from supplies to farm businesses (2) A substantial part of the turnover of the business must be, or have been, from the business supplying, to farm businesses in affected areas, goods or services relating to primary production by those farm businesses. Effect of drought on business (3) As a consequence of drought affecting farm businesses in affected areas, there must have been: (a) a material reduction in the turnover of the business; or (b) a material increase in unsecured debts to the business by farm businesses. Business has fewer than 20 employees (4) The business must have fewer than 20 employees other than casual employees. Business not a farm business (5) The business must not be a farm business.