Regulation 8 Determining the interest rate for a loan that might reasonably have been expected to have been available on the market
Where the subsidy is given by means of a loan to a person with a strong, good or satisfactory level of creditworthiness, the interest rate at which a loan of the same kind might reasonably have been expected to have been available on the market may be calculated by adding—
the relevant base rate, which is determined by identifying the period over which the loan is to be repaid, as set out in Table 1 in Schedule 2, and
the relevant mark-up rate in the third column of Table 2 in Schedule 2, which is determined by identifying—
the person’s level of creditworthiness in accordance with regulation 2(2), and
the percentage loss that a public authorityf1 may experience if the person in receipt of the loan does not repay the loan, as set out in the second column of Table 2 in Schedule 2.
Annotations
Footnotes
- f1
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“public authority” has the meaning given by section 6(1) of the Subsidy Control Act 2022 (c. 23).