New inquiries a boost for SMEs

Ombudsman Kate Carnell said the inquiry, Affordable Capital for SME Growth, will explore the range of international initiatives that seek to address the funding gap for SMEs. The report is due in July 2018.

“The inquiry will examine Australian initiatives where the government shares the lending risk, and state/territory initiatives to support small business start-ups and growth,” said Ms Carnell.

“International initiatives to be further examined include the British Business Bank and the US Department of the Treasury’s Small Business Lending Fund.

“We will consult with Australian and international experts in SME lending and risk management, and liaise with Australian regulatory bodies.”

The ASBFEO’s new inquiry follows the federal government’s plan for an inquiry into impediments to business investment, in a bid to boost economic growth from the private sector.

Treasurer Scott Morrison announced last week that he has written to the House of Representatives standing committee on economics.

“Business investment is critical to economic growth. When firms are empowered to invest in new productive capacity and technology, it supports innovation and helps create new opportunities and employment for Australians,” said Mr Morrison in a release.

“Business has told us that regulations are one major impediment to investment, especially in terms of the volume of regulation and compliance costs. Businesses find it particularly difficult when they are required to interact with multiple levels of government.”