Vow to keep up business lending
(10 March 2009 – Australia) Australian banks have vowed to maintain funding to the small business sector, in a Government facilitated round table on small business funding.
Federal Small Business Minister, Dr Craig Emerson, facilitated the roundtable discussion between bank representatives and small business organisations to discuss credit flow to small business against the backdrop of the global financial crisis.
Representatives from the ABA, ANZ, BOQ, Bendigo Bank, CBA, NAB, Westpac and Suncorp attended the roundtable, as did the Council of Small Business of Australia and other business organisations.
The banks explained that the average cost of wholesale funding has increased, while banks generally regard lending to small businesses as a riskier proposition when compared to residential loans. It is because of these factors that lending rates to small businesses are currently higher than home loan rates.
As an outcome to the roundtable, banks have indicated that they will seek to maintain funding to the small business sector.
They also undertook to pass on to small business, to the maximum extent possible, any reduction in the cost of funds, while maintaining prudential standards.
The banks noted that they are open for lending, specifically to viable businesses.
Also, as a result of the roundtable, the Government has set up a small business complaints clearing house with the ABA.
The Government also announced the 55 successful applicants for its $4 million advisory services program for small businesses during the global financial crisis. These organisations will assist small businesses in preparing business plans and applications for finance.
This builds on the $42 million national network of 36 one-stop small business advisory services which the Commonwealth has already funded.
Representatives from the ABA, ANZ, BOQ, Bendigo Bank, CBA, NAB, Westpac and Suncorp attended the roundtable, as did the Council of Small Business of Australia and other business organisations.
The banks explained that the average cost of wholesale funding has increased, while banks generally regard lending to small businesses as a riskier proposition when compared to residential loans. It is because of these factors that lending rates to small businesses are currently higher than home loan rates.
As an outcome to the roundtable, banks have indicated that they will seek to maintain funding to the small business sector.
They also undertook to pass on to small business, to the maximum extent possible, any reduction in the cost of funds, while maintaining prudential standards.
The banks noted that they are open for lending, specifically to viable businesses.
Also, as a result of the roundtable, the Government has set up a small business complaints clearing house with the ABA.
The Government also announced the 55 successful applicants for its $4 million advisory services program for small businesses during the global financial crisis. These organisations will assist small businesses in preparing business plans and applications for finance.
This builds on the $42 million national network of 36 one-stop small business advisory services which the Commonwealth has already funded.
Subscribe