The Commonwealth Bank, ANZ, National Australia Bank and Westpac have each committed to $100 million, to match the government’s $100 million contributions. HSCB and Macquarie Bank have also each contributed $20 million each. This is great news for small to medium businesses including salon businesses.
According to the Australian Small Business and Family Enterprise Ombudsman Kate Carnell the launch of the Australian Business Growth Fund is fantastic news for high growth potential SMEs who require essential long-term equity finance to flourish.
It is estimated that this fund will play a significant role in encouraging business growth and economic recovery at times when it most need.
Ms Carnell also stated that the fund will fill the critical gap, identified in our Affordable Capital for SME Growth report, for patient capital to enable our up-and-coming SMEs to succeed. While businesses need to demonstrate three years of revenue growth and profitability, there are allowances in place for the impact of the COVID crisis on recent business performance. She further stressed that minority shareholding of between 10 per cent and 40 per cent will enable these promising businesses to retain control of their company, while providing the funds they need to invest in growth.
While times are tough, please check with your accountant to determine if you qualify, as there are some amazing opportunities for financial support.