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Affordable Capital for SME Growth Inquiry (June 2018)

On 29 June 2018, Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, released the report from the Affordable Capital for SME Growth Inquiry.

28365365体育投注The inquiry explored international and national initiatives that aim to address the funding gap for small to medium sized enterprises (SMEs).

28365365体育投注Lenders consider SME’s high risk and offer capital with restrictive terms and conditions, high interest rates, and demand security (usually the family home).

28365365体育投注The inquiry examined:

  • Australian initiatives where the government shares the lending risk, including Clean Energy Finance Corporation, Export Finance and Insurance Corporation
  • state and territory initiatives to support small business start-ups and growth
  • international initiatives, including the British Business Bank and the U.S. Department of the Treasury’s Small Business Lending Fund.

28365365体育投注The report has eight recommendations outlining initiatives to increase the supply of capital, and raise awareness of alternative sources of finance outside traditional banking.

Business Growth Fund research paper

Recommendation 1 in the Affordable Capital for SME Growth inquiry report is to establish a Business Growth Fund, a private investment fund focussed on long term funding solutions for SMEs. ASBFEO has developed a research paper28365365体育投注 that outlines possible sources of funding, structure and products of such a fund.

28365365体育投注We welcome the governments’ commitment to fast track establishment of such a fund as announced on 14 November 2018 by Treasurer, Josh Frydenberg MP and Minister for Small and Family Business, Skills and Vocational Education, Senator Michaelia Cash.