Small and medium sized businesses (SME) are set to get the boost they need, with the banking industry backing a new initiative. The big four buy-in sees the Australian business growth fund, which assists SMEs to achieve their full potential bolstered by $520m.
Treasurer Josh Frydenberg has confirmed that ANZ, CBA, NAB and Westpac will each commit $100m to the fund, with HSBC contributing $20m. Further, the federal government is also pledging an additional $100m.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said the commitment from the banking industry provides a much-needed confidence and capital boost.
“We welcome both the government investment in the fund, which has now been matched by the major banks,” Carnell said.
“The Australian business growth fund was a recommendation in our Affordable Capital for SME Growth report, which identified the need to address a critical funding gap for long-term capital to enable high growth potential SMEs to flourish.”
Business growth fund
Announced last year and confirmed in April, the business growth fund is an initiative introduced to assist SMEs with annual turnovers of between $2m and $50m.
Administered by an independent board and chair appointed by shareholders, it is expected to mature to $1bn over three to five years and help between 30 and 50 small businesses annually.
Carnell said regardless of investment, the business growth fund would allow SME operators to maintain control of their…