On Wednesday, the Treasurer, the Hon Josh Frydenberg MP, announced a new $2 billion Australian Business Securitisation Fund, which will invest in the securitisation market and provide additional funding to smaller banks and non-bank lenders to enhance access to funds for Australian small businesses.
Many small businesses ‘find it difficult to attract passive equity investment which enables them to grow without taking on additional debt or giving up control of their business’ said the Treasurer.
The fund will be a vital means of financing small businesses following the tightening of access by the big banks subsequent to the Financial Services Royal Commission.
The Australian Small Business and Family Enterprise Ombudsman, Ms Kate Carnell AO, commented that ‘The Australian Business Securitisation Fund will go a long way in meeting the financial needs of the Australian small business sector by stimulating greater competition in the lending market’.
The Treasurer also signalled his intention to establish an industry-backed Australian Business Growth Fund to enable bank investment in small businesses, flagging that he would be discussing the move with key stakeholders in the next sitting week.
This fund would be modelled on the United Kingdom’s profitable Business Growth Fund, which has invested more than $2.7 billion across a range of sectors since its launch in 2011.
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