Scott Morrison - Australian Business Growth Fund
- Written by Scott Morrison
BACKING SMALL AND FAMILY BUSINESSES TO GROW AND CREATE JOBS
The Morrison Government will establish a $100 million Australian Business Growth Fund to help small and family businesses to grow into bigger and better businesses and create more jobs.
Many small and family businesses can only get equity funding by giving up control of their business.
The Fund will deliver patient capital to these businesses so they can grow without having to give up control. As the Fund matures, it is anticipated to grow to $1 billion and back 30-50 businesses each year with annual turnovers between $2m to $50m.
The Fund will be modelled on the similar vehicles that have been set up in both Canada and the United Kingdom. As an example, since 2011, the Business Growth Fund in the UK has invested around $2.7 billion in a range of sectors across the economy.
The Government will partner with other financial institutions to provide equity funding to small and family businesses.
The Government has been working closely with a number of banks and other financial institutions to establish the Fund and is confident, if it is re-elected, that the Fund will gain the private sector support needed to bring it life.
The Government has also had positive discussions with the Australian Prudential Regulation Authority (APRA) who is supportive of the Fund being established as proposed in conjunction with these financial institutions.
The Fund will complement the $2 billion Australian Business Securitisation Fund that will provide more funding for smaller banks and non-bank lenders to lend to small and family businesses which commences operation on 1 July 2019.
Improving small and family business access to finance is builds on our support for small business including:
- Lowering taxes and expanding and increasing the instant asset write-off;
- Ensuring small businesses get paid on time;
- Ensuring they have the skills they need for today and tomorrow;
- Cutting red tape and lifting the paperwork burden;
- Ensuring they have affordable, reliable and sustainable energy; and
- Helping them seize the opportunities of the digital economy
The Fund and our support for small and family business is part of our plan for a stronger economy and a more secure future.
Daily Bulletin
