SMEs investing in pandemic recovery: CBA

Australia’s biggest bank has revealed the significant increase in business lending for machinery and equipment over the past year.

29 April 2022 

The latest data from the Commonwealth Bank of Australia (CBA) showed a 17% growth in financing for equipment and machinery financing among small businesses this financial year, compared with the same period last year, continuing its high demand.

It also revealed that 67% of businesses budgeted for new equipment in the next 12 months, with 55% of those businesses specifically planning to invest in IT and office technology.

Government incentives such as the instant asset write-off scheme, extended until mid-2023, new tax incentives to encourage small businesses to invest in technology and training, and new interest rates from CBA for its SME recovery loans have played a “significant role” in lifting business investment, Grant Cairns, CBA’s Executive General Manager for business lending said.

Mr Cairns said he expects the growing rate of investment to continue.

“There is also the government-backed SME Recovery Loan Scheme available until 30 June this year, as well as new government measures providing upfront deductions on digital infrastructure, so I expect we will see a continued uplift in small businesses investment,” Mr Cairns said.

The federal budget included measures that allow small businesses to receive a $120 tax deduction for every $100 they spend on training staff or investing in technology up to a maximum of $100,000 a year.

Mr Cairns said the CBA was committed to supporting businesses to invest in the future.

“Last week we released new lower rates through CBA’s Government-backed SME loan, the ‘Business Restarter Loan’ with rates from 3.29%, including flexible payment and security options and repayment holidays,” he said.

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