COVID-19 lockdown has had a prolonged impact on small and medium enterprises (SMEs). To combat this, the Federal Government has formally launched the Australian Business Growth Fund. This comes just in time as we head into the recovery phase of the pandemic.
Originally proposed late last year, the fund aims to mimic the success of the United Kingdom’s Business Growth Fund, which has invested 2.7 Billion since its establishment in 2011.
The Government is making an investment of $100 million to kickstart the fund, with the major banks ANZ, CBA, NAB, and Westpac also committing to invest $100 million respectively. Also involved is HSBC and Macquarie, who have each dedicated $20 million to the fund.
The combined seven shareholders give this fund an investment size of $540 million, with hopes to continue to increase its investment capacity to $1 billion.
The BGF objectives:
- Increase the availability of patient equity capital to Australian SMEs;
- Increase the level of investment in SMEs across Australia;
- Facilitate interstate and overseas trade and commerce; and
- Support job creation and economic growth in response to the current COVID downturn.
To be eligible:
- Have an annual revenue of between $2million and $100million
- Have a track record of three consecutive years of growth and profitability
Assessment of business growth and profitability will take into account any uncharacteristic trends that resulted from the COVID-19 pandemic.
If your client is an SME, contact a lending advisor from Partners Wealth Group today on 1800 333 143 to see how we can assist in getting an approval in place so your client can take advantage of the Australian Business Growth Fund.