The Australian Office of Financial Management has issued an invitation to market participants to submit proposals for investment by the Australian Business Securitisation Fund.The AOFM says it expects to announce its decision on the first round of ABSF investments late in the first quarter or early in the second quarter next year.It has also issued a market survey questionnaire as part of its work gathering SME lending market data.It says it will take into consideration whether lenders have participated in the survey when assessing investment proposals.The ABSF was launched in July with A$250 million of government funding. Over the next four years it will receive a total of $2 billon of funding. It was set up to invest in securities issued by warehouses vehicles established by small business lenders, with the aim of supporting the provision of credit to the SME market and to make the SME lending sector more competitive.According to draft investment principles released earlier this year, guiding principles are grouped under two headings: market impact and risk management.When it comes to market impact, the AOFM will look at how the proposed investment will impact the SME lender's development path, its SME clients and improve the broader SME lending market. It will favour transactions that are more transparent and which can serve as "model" transactions.It will look for deals that are likely to attract, rather than crowd out, non-securitised investment and it will look for deals that enhance competition.Risk management considerations will include the lender's ability to demonstrate good governance, good practice in lending assessment, servicing and collections.The AOFM will look at how lenders manage environmental, social and governance risks, which in this context will include unfair contract terms and anti-money laundering. It will also consider reputational risk, which means "lending to industries involved in illegal or questionable activities and the black economy."It will look for lending activities that are "broadly in line with an investment grade risk profile." And it will look for good regulatory compliance.The deadline for submissions is January 15.