The Australian Office of Financial Management (AOFM) announced a round of funding from the Australian Business Securitisation Fund (ABSF) to enable smaller lenders to continue supporting Australian small and medium sized businesses (SME’s). The AOFM will invest $250 million of ABSF funding in securities issued by a warehouse facility to support lending to SME’s. The investment will fund a portfolio of loans for a period of up to four years and will assist with deepening the market for SME asset backed securities. Small lenders are critical to Australia’s lending markets in creating more competition, especially for SME’s, during the current coronavirus crisis. This funding complements other initiatives undertaken by the Government and the Reserve Bank of Australia (RBA) to support lending to SME’s, including: $15 billion to allow AOFM to invest in wholesale funding markets used by small ADIs and non-ADI lenders. The AOFM made its first investment under this program on 27 March, purchasing residential mortgage‑backed securities valued at $189 million. The SME Guarantee Scheme to support up to $40 billion of lending to SMEs. Under the Scheme, the Government will guarantee 50 per cent of new loans issued by eligible lenders. The RBA’s $90 billion term funding facility for ADIs with a priority for SME lending. The Government will continue to do what it takes to ensure that Australia bounces back stronger.