'The system is broken': government poised on small business fund

The Morrison government is flagging imminent action to ensure lending to small business continues as bank funding tightens further in the wake of the financial services royal commission.

Small business minister Michaelia Cash told Fairfax Media the banks appear to have tightened their lending to smaller companies.

"What is consistently raised with me is access to finance," she said. "I have had reports from small business of this, the banks themselves say they are not.

"Obviously I have been in discussion with the treasurer and assistant treasurer as to what can be put in place.  We can't say anything more in the lead up to MYEFO but that is something that is top of mind."

The small business ombudsman's report Affordable Capital for SME (small to medium enterprise) Growth published earlier this year recommended the establishment of a business growth fund, government guarantee scheme and personal property security register to assist small businesses.

A well-placed source said the government was looking closely at the establishment of a similar business growth fund which could offer both loans and investment to support SME growth. Read more

Cara Waters - Brisbane Times - 13 November 2018