Government to help finance small businesses

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Small businesses finding it difficult to attain finance can expect assistance from the Federal Government, says Minister for Small Business Craig Emerson following a roundtable discussion between banks and business groups late last week.

If an SME has had an application for credit refused by a financial institution, they will have a second chance to access credit by appealing to the government.

“If they have been knocked back by their local branch manager then at least they can come to us, set out their case,” said Emerson. “We’ll pass that on to the Australian Bankers’ Association, they will then farm it out to the individual banks and also perform the role of following up. So it won’t be a dead letter.”

The roundtable was arranged due to the increasing number of small businesses being refused finance due to the credit crunch. Emerson says it was important to address this issue to ensure credit flowed to small business, “because small business are big employers”.

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2 COMMENTS

  1. I am in financial disaster after purchasing this business in May 2007 I was wondering if there is any help out there

  2. Hi Debra.
    The following websites may be of use to you:

    http://www.business.gov.au/Business+Entry+Point/
    http://www.ato.gov.au (Australian Tax Office)
    http://www.business.vic.gov.au/loanfinder

    The Commonwealth Bank has also introduced a Small Business Investment package, more information can be found at http://www.commbank.com.au/business/supporting-small-business.aspx

    Alternatively, I would suggest approaching your bank manager for funding.

    We have a number of great articles about funding business growth, security a business loan and stress testing for small business under financial strain, that can be found under our ‘Finance’ section.

    Good luck and hope this helps!

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