Skip to main content
Financial Assistance Hub

Flow of credit to small business remains strong

20 October 2020

Since February 1, Australian banks have approved over $41b for SMEs and sole traders. That’s an average of $5 billion per month.  


During the COVID-19 pandemic, Australian banks have continued their strong support for small and medium businesses across the country. Approval rates for loans have remained high throughout the crisis, at around 70% of loan applications received.  

In the six weeks up to October 7, the banks approved loans of more than nine billion dollars to small and medium businesses and sole traders.  

Banks have been willing to lend to more than 128,000 Australian firms since the pandemic began, with an average loan size is $320,000. 

“Australian banks are continuing to provide a lifeline to small and medium businesses across the country.”

ABA CEO Anna Bligh

On average, banks have approved more than 500 new SME loans a day for more than 250 days. 

Total lending approved to all businesses, of any size, is more than $200 billion since February. 

“The clear message from this new data is that Australia’s banks remain open for business for small business customers”, said Australian Banking Association CEO Anna Bligh. 

“The banks’ commitment to small business has been supported by a number of Government and regulatory measures, including the RBA’s Term Funding Facility, changes to business lending rules, the instant asset write-off, and the SME loan guarantee.” 

“Australian banks are continuing to provide a lifeline to small and medium businesses across the country. The rate of lending has held up strongly despite the pandemic.” 

“These small businesses will drive Australia through the crisis, and after it has passed, employ millions of Australians as the economy rebuilds.” 



Latest news

1 / 3
Transcript
ABA CEO Simon Birmingham interview on Mix 104.9 Darwin with Katie Woolf 
21 November 2025

E&OE Radio Interview Mix 104.9 Darwin  20 November 2025  Topics: Black Friday scam warning; meta profiting from scam ads.  Katie Woolf (Host): Now, we are due to catch up with the Australian Banking Association of Australia, because they’re urging Territorians and indeed, everybody across Australia to stay alert as Black Friday sales kick off with shoppers losing almost $40 million to scams in the past year. And I know that we… Read more »

Read more
Media Releases
Banks support agriculture sector with strong lending growth
21 November 2025

Lending to Aussie farmers now exceeds $140 billion as banks continue to recognise the integral role agriculture plays in supporting the regions and the wider Australian economy. The ABA has today marked National Agriculture Day, launching its 2025 Banking in Agribusiness report, which shows outstanding credit to Australia’s 170,000 agribusinesses has jumped 80 per cent… Read more »

Read more
Transcript
ABA CEO Simon Birmingham interview on 2SM with Tim Webster 
20 November 2025

E&OE  Radio Interview  2SM Breakfast 18 November 2025   Topics: Black Friday scam warning; Meta hosting scam ads  Tim Webster (Host): Now we’ll remind you about all of this regularly, because there’s too much going on, it’s just not funny and we’ve done it a couple of times already today, and we’ll continue to do it. Shoppers are being urged to be wary of dodgy deals, because the Black Friday sales are pretty much on, and it’s you know, they’re on but there’s no specific Friday. So nearly $40 million was lost to buying… Read more »

Read more