Royal Commission Small Business and US China trade talk

There are fears tighter lending standards and any new regulations out of the banking royal commission could make it even harder for small businesses to get loans.

Small business finds it hard to borrow loans from banks. Source: SBS Small Business Secrets (Supplied)

The royal commission is to hear about small business owners who have been wronged by banks during a two-week public hearing beginning today. Small business advocates warn against further regulations, saying lenders are already becoming more risk adverse in the commercial space.

Council of Small Business Australia CEO Peter Strong said many small business owners who want to grow their businesses find it hard to get finance while some may have to use their homes as security for the loan.