S.L. 325.6 Art. 10Loan guarantees.

(1) Where the Corporation is satisfied that the activities of a qualifying company, being a company which qualifies as such in terms of article 3(1)(a) and (b) of the Act, may contribute to the development of the economy as is consistent with the aims and objectives of the Government, the Corporation may guarantee loans taken by the company to finance the acquisition of additional assets to be employed in the company’s trade or business to the extent that the expenditure on such assets constitutes qualifying expenditure.

(2) The loan guarantee referred to in sub-regulation (1) shall not exceed 75% of the qualifying expenditure in respect of which the loan is provided.

(3) For every loan guarantee provided, the Corporation shall keep sufficient funds on investment in order to cover the maximum amount of capital and interest that the Corporation may be required to pay as guarantor at any point in time.

(4) When acting as guarantor, the Corporation shall retain its rights to be subrogated in the rights of the lender once it effects a payment under the guarantee.

(5) The Corporation shall only provide guarantees to banks and other licensed financial institutions.

(6) A company which carries on or intends to carry on the activities referred to in regulation 4(3)(e), (f) or (j) either solely or together with any of the activities referred to in article 3(1)(a) and

(b) of the Act shall, subject to the approval of the Corporation, be entitled to the benefit provided by this regulation.

(7) An unemployed person registering for employment under Part One and Part Two of the Register of persons seeking employment maintained in terms of article 11 of the Employment and Training Services Act, who undertakes or intends to undertake at his own expense specialised information technology training, may, subject to the approval of the Corporation, be granted the benefit provided by this regulation.

(8) No new loan guarantees may be granted by the Corporation in terms of the provisions of this regulation with effect from the first

(1) day of July of the year 2019.