Commonwealth Bank announces Small Business Investment Package
5 March 2009
The Commonwealth Bank has today announced the Small Business Investment Package to support sustainable small business growth in the current economic environment.
According to Ian Narev, Head of the Commonwealth Bank’s Business and Private Banking division, the package is designed to support the short and long term needs of small business to ensure they not only survive, but prosper.
“The Commonwealth Bank is strong and well capitalised. We will use our strength to help stimulate the continuation of investment by small business,” he said.
“There’s a misconception out there that small businesses do not have access to the lending facilities they need to operate in the current environment. We want to make it clear that we are open for business for small business.
“The Commonwealth Bank has lent, and will continue to lend, to credit-worthy small businesses. Our lending criteria remain responsible, not restrictive.”
Mr Narev said that in the last 12 months the Commonwealth Bank has approved over $12 billion in lending to small and medium sized businesses and he expects lending to remain at similarly high levels over the course of the next 12 months.”
As well as access to funds, the Commonwealth Bank Small Business Investment Package focuses on practical and accessible banking advice, and targeted rate cuts designed to improve cash flow and stimulate investment in training and equipment.
The key details of the Package, which is available to small businesses with less than $10 million in turnover, are as follows:
- CBA Better Business Loan (BBL) rate cut: We will cut our Residentially Backed Secured Business Loans by 0.25% for all customers despite the RBA’s decision to hold rates steady earlier this week.
- Small Business Forums: We will be holding 20 free forums in metropolitan and major regional centres, to help small business understand how they can take advantage of the Government’s stimulus initiatives, and how best to present their business to secure access to funding. The forums will be hosted by leading small business experts from the Commonwealth Bank and external speakers. Customers will be able to register online in the next few days.
- Discounted Investment Spend Interest Rate: Small business customers looking to take advantage of the Government’s Investment Allowance will be able to get a reduction of up to 1% on standard asset finance rates.
- Special Training Rate: Small business customers who plan to invest in recruitment and training will be eligible for a 1% reduction on our BBL Benchmark Rate and 0.25% off Residential Equity Rate.
“This is a tough time for small businesses and we have developed this package to ensure that they can continue to focus on their core operations from a solid financial foundation. It is not a short term funding fix, but a way of helping businesses maintain the investments necessary to ensure their business is positioned well for sustainable future growth,” Mr Narev said.
While there are opportunities for many small businesses, there will be some that experience difficulties at this time. To support these customers, we will also be adding additional resources to assist customers through times of financial hardship.
The package is in effect until 30 June 2009 and further details are available from Commonwealth Bank Relationship Managers or www.commbank.com.au/supportingsmallbusiness.
For more information contact:
Ph: (02) 9378 5965
Mob: 0411 698 785