73,000 small and medium businesses on the Gold Coast will benefit from the Liberal National Government’s introduction of a $2 billion Australian Business Securitisation Fund.
Local MP, Karen Andrews said many small and medium business owners on the Gold Coast find it difficult to obtain finance unless they put up their family home as collateral.
“Even when small and medium businesses can access finance, funding costs are higher than they need to be,” Mrs Andrews said.
“To overcome this and ensure small and medium businesses on the Gold Coast are able to grow, the Australian Business Securitisation Fund will invest up to $2 billion in the securitisation market.
“This will provide significant additional funding to smaller banks and non-bank lenders to on-lend to small and medium businesses on more competitive terms.”
The Government is also in consultation with regulators and financial institutions in regard to the establishment of an Australian Business Growth Fund. This fund would provide longer term equity funding to small and medium businesses as many of these businesses find it difficult to attract passive equity investment which enables them to grow without giving up control of their business.
“The Government has introduced a number of measures to support Australian small and medium businesses including our small and medium business tax cuts, the $20,000 instant asset write-off and cutting nearly $6 billion of red tape,” Mrs Andrews said.
With more than three million small and medium businesses employing around seven million Australians, enhancing small and medium business access to funding is part of the Liberal National Government’s plan for a stronger economy.