Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

SMEs receive $250m support package

treasury/Josh-Frydenberg/SMEs/lending/

3 April 2020
| By Laura Dew |
image
image image
expand image

The Treasurer, Josh Frydenberg, and the Australian Office for Financial Management have announced measures to support the small and medium-sized business (SMEs) sector with a $250 million package.

The funding from the Australian Business Securitisation Fund would enable smaller lenders to continue supporting SMEs by investing $250 million into securities issued by a warehouse facility to support lending to SMEs.

This would fund a portfolio of loans for up to four years to assist with deepening the market for SME asset-backed securities.

This type of lending was ‘critical’ to Australian markets in creating competition, Frydenberg said.

“Small lenders are critical to Australia’s lending markets in creating more competition, especially for SME’s, during the current coronavirus crisis.

“The Government will continue to do what it takes to ensure that Australia bounces back stronger.”

It complemented existing measures for SMEs such as:

  • $15 billion to allow AOFM to invest in wholesale funding markets used by small authorised deposit-taking institutions (ADIs) and non-ADI lenders. The AOFM made its first investment under this program on 27 March, purchasing residential mortgage‑backed securities valued at $189 million;
  • The SME Guarantee Scheme to support up to $40 billion of lending to SMEs. Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders; and
  • The RBA’s $90 billion term funding facility for ADIs with a priority for SME lending.
Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 4 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 4 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

2 weeks 6 days ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 3 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

5 days 15 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3