Small business loans qualify for AOFM aid
Business loans, but not, it seems, commercial mortgages, will qualify for investment from the Australian government in its third round of funding intended to sustain the competitive position of lenders outside the big four banks.In a media release yesterday Wayne Swan, Australia's Treasurer, said the Australian Office of Financial Management will extend the collateral eligible for investment under this scheme.Swan said he wanted the pools of mortgages in which the AOFM invested to include "a greater proportion of prime residential mortgages used by small business owners to fund their business".This appears to rule out small-sized commercial mortgages as eligible collateral, something sections of the industry were hopeful would be agreed as part of any additional government investment.