The Australian Office of Financial Management (AOFM) has released draft investment principles for the funding by the Australian Business Securitisation Fund of non-major banks and non-bank lenders to on-lend to small businesses .

The funding will be administered by the Australian Office of Financial Management (AOFM).

Through the ABSF, AOFM will fund new and existing warehouse facilities for SME loans alongside the private sector and buy and hold securitised SME loans in order to support segments of the market where there are identifiable gaps.

Click image to enlarge. Source: Treasury

The AOFM is not seeking to receive investment proposals at this stage. The AOFM will call for proposals to invest ABSF funds when the investment principles have been finalised and released.