Mr. John Pan is asking to apply for an ROL Foundation loan for $50,000-$200,000US to start a new business in Australia (please see attached).
Certain gateway concerns arise regarding such loan(s):
• Loan Purpose: The loan requested would be to build an electrical product safety certification company, which is not related to ROL Foundation’s mission.
• Loan Limit: $50,000 is generally our absolute upper limit on microloans, with the assumption that our loans would be for much less. Additionally, we offer one year terms for loans, asking applicants to reapply for future years; this allows us to more ably control and audit the use of the loan. Here , Mr. Pan would presumably seeks $50,000 four times (for each of 4 years);
• Company Viability: As shown in Mr. Pan’s budget, the company would not potentially make a profit until after four consecutive years with a $50,000 loan in each year.
• Loan Location: Mr. Pan lives in Australia. Our loans were originally conceptualized to help small companies within the US. Giving loans outside the US raises additional issues with the US Treasury Department’s Office of Foreign Assets (OFAC) and we would be at a high level of oversight and compliance. OFAC is concerned with use of assets given, the nature and actors within and behind companies, auditing of use of assets, and a serious concern about such assets being used for money laundering and/or terrorist activities. In order to comply with OFAC concerns, we would need to set up complex professional audit and maintenance for this particular loan. Such compliance would include the required hiring of outside auditors in Australia and random site visits.
• New Company: Originally the loans were conceptualized to be offered to existing companies to support their growth. This company exists in name, but not operationally. In effect, it could be deemed giving a loan to a new enterprise.
• IRS Standing: ROL Foundation’s 501(c)(3) status is still pending. OFAC concerns could easily derail the organization being approved by the IRS. Coming back from such a disapproval would be challenging.
Initial Loan Request:
I am John Pan, the director of Oz Cert Pty Ltd. The company ABN is 16 634 873 831. I would like to apply a loan of USD$50,000 to USD$200,000 from Rule of Law Foundation for 4 years.
我叫约翰潘，Oz Cert Pty Ltd公司的董事。澳洲公司的商业注册号是16 634 873 831。我想向法治基金申请一笔5万到20万美元的贷款，为期4年。
I planned to start the business from July 2019 with AUD $400,000 investment. The business’ 5-year budget is attached below for reference.
Now the plan had been kicked off, but the investment fund had not been in position due to current Chinese policies of restrain oversea money transfer.
My company is an Australian based electrical product safety certification company, with accreditations from Joint Accreditation System of Australia and New Zealand (JAS-ANZ) and Australian regulators. The company issues certificates for electrical products before entering Australian market to ensure safety.
My general manager has been working in certification industry in Australian for 10 years, who is also a committee member of the Standards Australian.
The certification industry in Australia needs a company with efficiency, profession and with a future vision. With all the investigations and preparations, and with your help for the fund, my company is going to succeed.