Small business owners — and the people who work for them — have another reason to consider voting for the Coalition in the upcoming federal election.
Which, of course, is one of the drivers behind Prime Minister Scott Morrison’s pledge to give small businesses access to $100 million of taxpayer money to help them grow.
Moving his election pitch to Adelaide for the first time, Morrison boasted his new plan to provide sought-after ‘patient capital’ for many Aussie small businesses.
Hopefully this punt for the little guy will disrupt the headline-making bias of the Coalition keeping the fat cats well fed.
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Support for those who ‘work every day’
According to AAP, the Coalition voiced their support of such a fund back in November 2018, and have been working closely with a number of financial institutions since then.
They’ve now announced a $10 million cash investment into its establishment, expecting other banks and super funds to jump on board.
Morrison, Treasurer Josh Frydenberg and Small Business Minister Michaelia Cash believe the fund will gain the private sector support ‘needed to bring it life’.
Morrison made the announcement while in Adelaide:
‘We’re backing all those Australians trying to make their small businesses into bigger businesses.
‘This is for those businesses like a local brewery or restaurant that wants to expand interstate or even overseas, or maybe a family owned construction company wanting to grow so they can meet demand.
‘It is those businesses that employ more than up to half the people that go to work every day, that pay the wages for half the people who go to work every single day.
‘We have to ensure that those small and family businesses can continue to grow, can continue to plan for their future, continue to invest, continue to hire.’
A winning fund?
The fund will operate under an independent board and chairperson which shareholders will appoint. Initially, these shareholders will comprise of the government and invested banks.
Within five years, the fund is expected to mature to $1 billion, helping up to 50 businesses every year. The Coalition also promise to create 250,000 new small businesses in that same timeframe.
‘It’s based on a similar model that works in the UK and in Canada,’ Morrison says, ‘This fund works together with other financial institutions to ensure that businesses between $2 and $50 million can gain access to equity funds to help them grow their business.’
On Monday, the also Coalition committed $5 million for grants to migrants seeking to start a new business in Australia.
This is all in the hopes of snagging the South Australian seat of Mayo from Rebekha Sharkie, a Centre Alliance MP who won it in 2016.
And, of course, securing a federal win so Aussie businesses aren’t hit with Labor’s horrendous ecotax.
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