$2b package from Federal Government to Boost Small Business Loans

A joint media release from Treasurer Josh Frydenberg and Minister for Small and Family Business, Skills and Vocational Education Michaelia Cash announces a 2-tiered proposal for Australian small businesses to access growth and investment funding.
The medium-term initiative is to make available debt funding to contribute toward reducing an $80 billion gap in the securitisation market, whereby small businesses are impeded in their ability to invest by a lack of competition amongst traditional lenders. This manifests itself in denial of access to debt funding through the absence of available security and/or higher and unsustainable interest costs.
The Australian Business Securitisation Fund would facilitate an injection of loan funds available to the market through smaller financial institutions, administered through the Australian Office of Financial Management.
The long-term initiative is to increase equity funding available to the market by way of relief from capital restrictions by the Australian Prudential Regulation Authority through the proposed Australian Business Growth Fund. Consultations between the Federal Government, APRA and other financial institutions are underway.