Australian Business Growth Fund

This program aims to provide longer term equity funding to small businesses. It is part of the Government's ongoing commitment to support SMEs as they seek to innovate, expand and create new jobs on the other side of the coronavirus crisis.

On 16 October 2020, The Fund has been formally established, with the Shareholders Agreement now signed by all seven shareholders.

The Government is making an investment of $100 million and partnering with other financial institutions to provide equity funding to SMEs through the BGF. The major banks including ANZ, CBA, NAB, and Westpac have also each committed $100 million to the BGF. HSBC and Macquarie have also committed $20 million each in support of the BGF.

This will give the BGF an initial investment capacity of $540 million, with the ambition to grow the fund to $1 billion as it matures. The BGF will operate commercially and make investment decisions independently of Government.

The BGF will invest consistent with its objectives, which are to:
- Increase the availability of patient equity capital to Australian SMEs.
- Increase the level of investment in SMEs across Australia.
- Facilitate interstate and overseas trade and commerce.
- Support job creation and economic growth in response to the current COVID downturn.

Established Australian businesses will be eligible to apply for long-term equity capital investments between $5 million and $15 million. The BGF’s investment will constitute a minority economic interest of typically between 10-40% of total, fully-diluted, share capital (on an ‘as-converted’ basis).

Following the appointment of the CEO, it is anticipated that the BGF will shortly begin engaging with SMEs that are seeking patient equity investment in their business to enable them to grow and expand.

Eligible applicants include established SMEs with annual revenue between $2 million and $100 million, and a track record of three consecutive years of revenue growth and profitability. The BGF’s assessment of an SMEs track record will take into account uncharacteristic trends resulting from the COVID downturn.