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Open for business: Banks continue to lend to small businesses
Credit is continuing to flow to small and medium-sized businesses, with $41 billion in new loans approved since February.
Open for business: Banks continue to lend to small businesses
Credit is continuing to flow to small and medium-sized businesses, with $41 billion in new loans approved since February.
Stats released by the Australian Banking Association showed banks have granted more than 128,000 loans to small businesses at an average size of $320,000.
Approval rates for loans have remained high throughout the crisis, at around 70 per cent of loan applications received.
In the six weeks to 7 October, the banks approved loans of more than $9 billion to small and medium businesses and sole traders.
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.”
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