The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, is pleased to see that industry funds are looking to lend to Australian businesses and hopes small businesses get to be part of the action.
“Super funds have significant amounts of money that belongs to Australians in their coffers,” Carnell said.”While we support them lending to major Australian businesses, they should also be investing in the engine room of the economy; small to medium enterprises (SMEs) with strong growth potential.”
Carnell noted that SMEs are already struggling to get access to finance due the tighter prudential rules put in place by Australian Prudential Regulation Authority and the approach the banks have taken in securing loans against the small business owner’s home. The ASBFEO first recommended to establish an investment fund similar to those established in the UK and Canada.
The investment fund, known as the Business Growth Fund would offer both loans and investment, with SMEs applying for amounts between $250,000 and $5 million, with terms up to seven years, secured against the business.
“We hope super funds will see that investing in high growth potential SMEs would provide strong investment returns, boost employment and improve the economy,” Carnell said. “We would welcome the opportunity of being involved in the discussions and actions with Australia’s industry funds.”
