After Canada and Britain has created their growth strategies funds to help small and medium businesses to grow over the past 7 years with 2.7 billion dollars, a lot of small businesses are benefiting from this fund. And these Australian businesses will be able to access this fund at the end of 2019.
Now Australian government want to use Australian tax money to set up the Australian Business Secularization Fund to boost its small and medium businesses. And Australian young entrepreneurs as well as new migrants who have limited assets to secured loans can access this fund. The Australian Small Business and Family Enterprise Ombudsman as well as the Council of Small Business have welcomed the news.
Kate Carnell from the Ombudsman said that there will be a lot of people who don't own a property or don't have enough equity to secure a loan will benefit.
Treasurer Josh Frydenberg says that it will be easier for small and medium businesses to fund their growth as well as non-bank lenders and small banks will be able to compete with Australian big banks. Because up until now there are no such platforms that can easily facilitate loan for small and medium businesses.
Mr. Frydenberg said that its government still need to talk with financial institutions like major banks, superannuation sector, and regulators to discuss this proposal later this November 2018.
Labor Treasurer Chris Bowen said that Labor will need to study the details and if this fund does provide credit to help small businesses, it will support federal government.
Whereas Peter Strong the CEO of the Council of Small Business also suggested that such proposal is overdue.
He said that during a walk in local park, he has encountered a man who runs production business worth $25 million can't even get a loan in Australia and he has to fly all the way to the UK to secure a loan for his business.
Therefore, Kate Carnell from the Small Business and Family Enterprise Ombudsman has urged all lenders to support this proposal.#
