The Federal Government, ANZ, CBA, NAB and Westpac have all committed $100 million each, while HSBC will contribute $20 million. The government is aiming for the fund to grow to $1 billion as it matures.

From June 2020 the Fund will provide long-term equity capital investments of between $5 million and $15 million to eligible businesses in exchange for between 10 and 40 per cent equity.  This will allow small-business owners to maintain control while also facilitating the financial support needed to drive business growth.

To be eligible businesses will need to have annual revenue of $2 million to $100 million and be able to demonstrate three consecutive years of revenue growth and profitability.

The Fund also proposes to offer non-financial support through the provision of strategic advice, mentoring, talent management and network referrals for small and medium businesses to access.

The Fund will be based in Melbourne and run commercially by a board and management team independent of both the government and the participating banks. 

The Victorian Government is also establishing a $250 million Victorian Business Growth Fund for small and medium enterprises with leading industry superannuation groups First State Super and VicSuper.

A competitive process is currently underway to appoint an independent fund manager, while the fund’s investment guidelines and further opportunities will be outlined next year.

For more information contact Business Victoria on 13 22 15.