Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020

Dated   6 April 2020

Josh Frydenberg

Contents

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Definitions..................................................................................................................... 1

5............ Delegation..................................................................................................................... 1

6............ Directions...................................................................................................................... 2

1  Name

                   This instrument is the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) (Minister) Delegation 2020.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under section 7 of the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.

4  Definitions

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

(a)    financial institution;

(b)    SME entity.

                   In this instrument:

Act means the Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Act 2020.

5  Delegation

                   I, Josh Frydenberg, Treasurer, acting under section 7 of the Act, delegate all of my powers under section 5 of the Act to each person occupying, or performing the duties of, the following positions:

                     (a)  Secretary of the Department;

                     (b)  Deputy Secretary of the Department.

6  Directions

             (1)  The delegates are directed to have regard to the following subsections in exercising the delegated powers.

             (2)  The total face value, in Australian currency, of loans in connection with which guarantees are granted should not exceed $40 billion.

             (3)  The Commonwealth should not bear more than 50% of the risk associated with loans in connection with which guarantees are granted.

             (4)  The principal of each loan in connection with which a guarantee is granted should be repayable within 3 years after the day on which the contract for the loan is entered into.

             (5)  A loan in connection with which a guarantee is granted should be intended to be used only for business purposes.