The Andrews Labor Government will establish a $250 million Victorian Business Growth Fund for small and medium enterprises to help them access capital and create jobs to grow the Victorian economy.
Treasurer Tim Pallas today announced a $50 million contribution towards the Fund, which will be developed with leading industry superannuation groups First State Super and VicSuper.
The Fund will be the largest of its kind in Australia, seeking to create thousands of jobs by investing in established Victorian businesses with compelling potential for growth and jobs creation.
The Labor Government, First State Super and VicSuper are continuing to work together to finalise the design of the fund, which is subject to a formal agreement.
A high-quality, independent fund manager will be appointed through a competitive process.
Many Victorian small and medium enterprises find it difficult to access affordable capital, limiting their ability to expand their business.
The Reserve Bank and the Small Business and Family Enterprise Ombudsman have repeatedly noted that the economy is being held back by a lack of access to finance.
The Fund will complement the Labor Government’s programs which already support businesses, such as the Victorian Jobs and Investment Fund and payroll tax cuts announced in the Victorian Budget 2019/20.
Quote attributable to Treasurer Tim Pallas
“The Victorian Business Growth Fund will give some of our best small and medium sized businesses the incentive to take on new ventures and employ more Victorians.”
Quote attributable to Minister for Jobs, Innovation and Trade Martin Pakula
“Industry super is a partner for people through their working life and we’re proud to join with First State Super and VicSuper to help businesses grow and provide even more jobs for Victorians.”
Quote attributable to Minister for Small Business Adem Somyurek
“This Fund will help break down the barriers small businesses face in obtaining the capital they need to grow.”
Quotes attributable to First State Super CEO Deanne Stewart
“So many promising small and medium-sized businesses are unable to reach their full potential because they simply can’t access the capital they need to take the next step. As one of Australia’s largest super funds, we have long been looking for innovative ways to invest in successful small and medium-sized companies that are ready to expand, in turn creating new jobs and economic growth in regional and metropolitan communities.”
“After more than 50 years of investing in Victoria, we are delighted to be partnering with the Victorian Government and VicSuper in the Victorian Business Growth Fund, to help grow local businesses that are so critical to the prosperity of our community and the State’s economy.”
Quote attributable to VicSuper CEO Michael Dundon
“We’re committed to investing responsibly to generate long-term value for our members and the communities that we live in. The Victorian Business Growth Fund is an exciting example of how Government and super funds can think differently and work together to drive great outcomes. It’s terrific to be involved with an initiative that helps create a stronger Victorian economy by providing capital for Victorian businesses to create new jobs in Victoria.”