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First Nations businesses that struggle to meet traditional lending requirements will be able to access new support under a corporate guarantee launched by National Australia Bank (NAB) and Indigenous Business Australia (IBA).
The initiative is designed to help eligible businesses secure loans of up to $1 million, with IBA guaranteeing up to half of the loan amount. The structure is intended to support businesses that may otherwise face hurdles under standard lending requirements, including those without property security.
NAB business and private banking group executive Andrew Auerbach said the guarantee was a practical, targeted way for First Nations business customers to unlock growth.
“Strong First Nations businesses deserve innovative solutions that unlock capital, to help them realise their ambition and potential. This guarantee helps remove that barrier, enabling good businesses to invest, grow and create jobs on their own terms. First Nations businesses are critical to local economies and communities. When they succeed, the benefits flow well beyond the business itself,” Auerbach said.
The initiative also gives both organisations a mechanism to support their wider Indigenous business targets. NAB has an ambition to lend $1 billion to Australia’s estimated 5,200 registered First Nations businesses and community organisations, while IBA’s strategy to 2030 includes a target to invest $5 billion to $7 billion over the next five years to advance the commercial and economic interests of First Nations people.
“First Nations businesses bring deep experience and innovation to the Australian economy, and access to finance helps them take the next step. By broadening the access to capital for First Nations businesses and collaborating with the financial sector, we can expand the support available for businesses to achieve their goals. This is about backing strong business plans and supporting sustainable economic outcomes for First Nations people,” IBA CEO David Knights said.
The initiative follows a Memorandum of Understanding signed by NAB and IBA in 2023. It also forms part of the Indigenous business strategies and Reconciliation Action Plans of both organisations.
