NAB boosts Microenterprise Loans
Australians on low incomes have greater prospects of turning business dreams into reality after the National Australia Bank’s fivefold expansion of Microenterprise Loans.
NAB’s decision to boost funding of Microenterprise Loans from $18 million to $100 million sets a high standard for corporate social responsibility.
This will open up opportunities for many more Australians to establish business ideas or grow existing ventures when they are unable to access mainstream loans.
This Government recognises the importance of corporate leadership and how crucial business action is to making it easier for people to get ahead.
Enterprising Australians who are financially disadvantaged or on low incomes will especially benefit form NAB’s announcement.
The Government currently invests in business literacy training and the New Enterprise Incentive Scheme (NEIS). Both are designed to support job seekers wishing to start their own business.
The Government will work with NAB to see how this private sector initiative and government programs can be coordinated to maximise opportunities for Australians on low incomes.
Loans of this kind can help people with disabilities, those with caring responsibilities and older Australians to gain economic independence and create employment opportunities.
NAB’s Microenterprise Loans provides for business loans of up to $20,000 on a non-commercial interest rate, without the need to provide security or equity. This enables quick establishment of small business loans.
NAB’s Microenterprise Loans also provide specific products to suit young people and Indigenous Australians.
Access to business skills training and advice during the first year of business operations are also provided.
Indigenous Australians are helped by NAB’s Indigenous Entrepreneurs product. This provides business training and mentoring to help Indigenous Australians develop business ideas and to succeed through the critical first year of business operations.
This joint loan is made possible through a partnership between Indigenous Business Australia (IBA) and the NAB.
A key benefit to clients is that they are supported by IBA through the establishment period of their businesses, while establishing a relationship with a major bank.