S.L. 325.6 Art. 9Loan interest subsidies.

(1) Where the Corporation is satisfied that the activities of a qualifying company, being a company which qualifies as such in terms 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 subsidise the rate of interest payable by the company on loans which the said company may take out in order to acquire 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 subsidy referred to in sub-regulation (1) shall be such as to ensure that the rate of interest effectively borne by the qualifying company shall not be less than the rate established in accordance with regulation 8(2).

(3) The subsidy provided by this regulation shall be in respect of loans taken to finance qualifying expenditure for which a soft loan in terms of regulation 8 has not been granted.

(4) Loans which qualify for the interest rate subsidy contemplated by this regulation shall be loans provided by banks and other licensed financial institutions.

(5) 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

(6) No new subsidies 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.