The Australian Business Securitisation Fund has made two new investments, allocating funds to small business lenders GetCapital and OnDeck.

The Australian Office of Financial Management announced that the ABSF investment manager, CIP Asset Management, has approved an A$87.5 million mezzanine investment in a warehouse sponsored by GetCapital and arranged by NAB, which is also the senior financier.

It has also approved a $30 million mezzanine investment in a warehouse sponsored by OnDeck Australia and arranged by Credit Suisse, which is also the senior financier.

Its only other investment is in a warehouse sponsored by Judo Bank.

The ABSF was launched in July 2019, with government funding to invest in securities issued by warehouses and special purpose vehicles established by small business lenders.

It was launched with $250 million of funding, which was to grow to $2 billion over four years.

It made its investment in Judo in April 2020 but a few months later the AOFM put the program on hold, citing challenging conditions in the securitisation market and delays in creating a data template for the scheme.

It reactivated the program in February, when it invited proposals for investment.

It is a separate initiative from the Structured Finance Support Fund, which the AOFM set up last year as part of the government’s COVID response to support the term securitisation programs of small lenders.