The Australian Office of Financial Management (AOFM) has approved a maximum investment of $90m into a Prospa warehouse trust through the Structured Finance Support Fund (SFSF).
The Treasurer announced the government’s intention to create the SFSF in March 2020, initially consisting of $15bn.
The initiative is part of the government’s efforts to support continued access to funding markets for small and medium enterprises impacted by COVID-19, in a bid to mitigate impacts on competition in consumer and business lending markets.
“This investment through the SFSF of up to $90m into our lending capacity, coupled with our $223m allocation through the SME Guarantee Scheme, comes at a critical time,” said Prospa CEO Greg Moshal.
“We commend the government for recognising how important small businesses will be to our economic recovery and for their support programs like the SME Loan Guarantee Scheme.
“These programs will work together and enable Prospa to quickly deliver funding to small businesses and support Australia’s economic recovery.”
The $90m is the maximum investment amount approved by the delegate, and the actual committed limit may be lower than this.