Victorian government announces $250m Business Growth Fund

The government’s aim is to create Australia’s largest fund of its kind to help small businesses access capital and create jobs to grow the Victorian economy.

Late last week, Treasurer Tim Pallas announced a $50 million contribution towards the fund, which will be developed with leading industry superannuation groups First State Super and VicSuper.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell welcomed the government’s announcement on Friday.

“I’m supportive of any initiative that gives SME operators access to funding at a time when they are being heavily impacted by tightening requirements by lenders,” Ms Carnell said.

While the design of the fund has yet to be finalised, Ms Carnell stated that it should be focused on long-term funding solutions for SMEs.

“Ideally, the fund would allow SMEs to access amounts between $250,000 and $5 million, with terms up to seven years.

“The involvement of superannuation funds in providing an initial pool of capital is also something we have previously recommended,” Ms Carnell said.

The Victorian government has said that once established, the fund will be supervised by an independent fund manager who will be appointed through a competitive process.