Judo Bank co-founder and co-CEO Joseph Healy.
Banks are neglecting the lending needs of small businesses and startups, with an estimated $120 billion in unmet need outstanding, according to Judo Bank chief executive Joseph Healy.
A submission from Healy, on behalf of the SME-focused neobank, to the Senate Committee on Australia as a Technology and Financial Centre, suggested a failure of the big banks to meet the requirements of the small business community.
It called out a “significant and unhealthy bias” towards mortgage lending, while SMEs and startups struggle to secure loan funding.
“The genesis of Judo was a belief that there was a market failure in the provision of credit to the SME economy by the banking system,” Healy said in the submission.
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Ombudsman welcomes support for small businesses in lockdown
The Australian Small Business and Family Enterprise Ombudsman Bruce Billson has welcomed the additional support to small businesses impacted by protracted lockdowns, announced by the Australian Government.
From week four of the lockdown, small and family businesses that have suffered a 30% decline in turnover, will receive 40% of their payroll payments (between $1500 and $10,000 per week) so long as staffing levels are maintained.
Sole traders who have experienced a 30% fall in revenue will receive $1,000 per week.
The payments are co-funded by the Federal and NSW Governments and will be administered by Services NSW.