The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, released a report from the Affordable Capital for SME Growth inquiry on June 29.
Launched in April 2018, the inquiry explored the range of international and national initiatives that sought to address the funding gap for small to medium sized enterprises (SMEs).
Lenders consider SME’s high risk and offer capital with restrictive terms and conditions, at interest rates few can afford and demand bricks and mortar – usually the family home - as security.
The inquiry examined:
- Australian initiatives where the government shares the lending risk including Clean Energy Finance Corporation, Export Finance and Insurance Corporation
- state and territory initiatives to support small business start-ups and growth
- international initiatives, including the British Business Bank and the U.S. Department of the Treasury’s Small Business Lending Fund.
The report contains eight recommendations outlining initiatives to increase the supply of capital, and raise SME’s awareness of alternative sources of finance outside traditional banking.
