Australian Chamber welcomes federal government’s support for small business

14 Nov 2018 |

“The government’s decision to improve access for small businesses to finance is welcome,” James Pearson, Chief Executive of the Australian Chamber of Commerce and Industry said today in response to the government’s announcement of a $2 billion securitisation fund and encouragement of the establishment of an Australian Business Growth Fund.

“For too long, many small businesses have had a hard time getting access to finance. The measures announced today show that the government has recognised that problem and has identified some tangible ways to address it. One is in the form of securitisation of loans to small business – the $2 billion Australian Business Securitisation Fund – and the other is in the form of the proposed establishment of an Australian Business Growth Fund, which could help small business attract equity financing on attractive terms.”

“We encourage the government to review prudential regulations and capital requirements that increase the cost of capital for small businesses, and consider the role of superannuation funds as well as underwriting institutions that lend to small business, consistent with prudential regulations.”

“These are very important issues for business. Many small businesses in particular struggle to obtain the finance they need to invest and to grow. And it’s not just access to finance, the cost of that finance should better reflect the current low interest rate environment.”

“As always, we encourage the government to work closely with the business community and prudential authorities in the design of measures that affect the operation of the financial markets and to ensure those markets function as efficiently and effectively as possible.”

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