fbpx
Skip to main content
Click here for the new Financial Assistance Hub

Increased small business lending boosts Australia’s economic recovery

24 July 2020

New figures reveal early signs of economic confidence beginning to grow in Australia with lending to small, medium and family businesses increasing by more than $2.2 billion last month.    


The new figures support Federal Treasurer Josh Frydenberg’s observation today that there is early evidence of increased economic investment in Australia.

Continued lending to small business between May and June is a further demonstration of the key role Australia’s banks are playing in the recovery of the national economy by helping small and medium businesses get back on their feet.

In total, banks have provided more than $258 billion in small business loans, helping to ensure the flow of new credit into the economy at a time it needs it most. 

“These figures show there are some green shoots emerging in our economy and that’s a positive sign.”

ABA CEO Anna Bligh

In a further sign that small, medium and family businesses are beginning to feel more confident about their financial future, they are starting to make their loan repayments again, with the value of SME loan repayments on deferral dropping by more than $686 million in June. 

ABA Chief Executive Anna Bligh said the new figures showed small businesses were growing in confidence about Australia’s economic future. 

“These figures show there are some green shoots emerging in our economy and that’s a positive sign. There’s a very long road, and plenty of hurdles to clear, but it’s encouraging to see small, medium family businesses slowly regaining some confidence,’’ she said. 

Ms Bligh said Australia’s banks continue to work in partnership with the Government and regulators to provide business, and all customers, the confidence they need to see us through these challenging times. 

“Banks are already showing they are prepared to lend to small and medium enterprises so they can get back on their feet. Our banks understand the key role they play in re-opening our economy.”

ENDS 

Find out more about Phase Two of banks’ COVID-19 support

Latest news

1 / 3
Media Releases
ABA welcomes Banking Code Final Report
3 December 2021

“This has been a thorough and transparent process and it has been encouraging to see the high levels of interest and engagement in the Banking Code.”

Read more
Media Releases
ABA Council appoints Peter King as new Chair
2 December 2021

The Australian Banking Association (ABA) Council has today appointed Peter King, Chief Executive Officer of Westpac, as Chair. 

Read more
Media Releases
Inaugural roundtable paves small business road to recovery
25 November 2021

“The small business sector is already powering Australia’s economic recovery. In the three months to August 2021, $10 billion in new lending was made to small business.”

Read more