The Morrison Government has unveiled plans to establish a $100 million Australian Business Growth Fund to help small and family businesses to grow and create more jobs.
The Fund will be modelled on the similar vehicles that have been set up in both Canada and the UK and will deliver patient capital to these businesses so they can grow without having to give up control.
The Government said it has been working closely with a number of banks and other financial institutions to establish the Fund and to provide equity funding to small and family businesses.
“As the Fund matures, it is anticipated to grow to $1 billion and back 30-50 businesses each year with annual turnovers between $2m to $50m,” the Morrison Government said in a statement.
“The Fund will complement the $2 billion Australian Business Securitisation Fund that will provide more funding for smaller banks and non-bank lenders to lend to small and family businesses which commences operation on 1 July 2019.
“The Fund and our support for small and family business is part of our plan for a stronger economy and a more secure future.”