Government urged to help small businesses access finance; 21st Century Fox profits slip in Q1: Midday Roundup

The federal government is being urged to consider a partial loan guarantee scheme to help small businesses access finance.

A report from the NSW Business Chamber and Deloitte Access Economics being released today found strict lending criteria which forces small businesses to provide collateral to secure a loan is making many small businesses ineligible.

“The federal government needs to work with lenders and the small business community to keep the financial arteries that support innovation and growth open in the face of rising national unemployment,” NSW Business Chamber chief executive Stephen Cartwright says.

“Our study indicated that access to finance affects more than 200,000 businesses, forcing them to slow their growth, lay-off staff or shutdown altogether.”

The NSW Business Chamber is also recommending prudential rules which make it difficult for banks to lend to small businesses being investigated as part of the future financial system inquiry.

21st Century Fox profits slip in Q1

First quarter profits of Rupert Murdoch’s 21st Century Fox have slipped 44% on last year’s results, despite broad revenue growth.

The results marked the first quarter for the company as a separate entity to News Corp.

In the three months from June, quarterly income from continuing operations slumped to $US768 million, down from $US2.25 billion in the previous corresponding period.

The previous year’s quarter had included $US1.37 billion from an asset sale.

“The investment we are making, including the launch of FXX and Fox Sports 1, will drive sustained growth toward our stated 2016 target of $9 billion of OIBDA and beyond,” Murdoch said in a statement. 

Shares drop on open

Aussie shares have opened down this morning, on the back of Wall Street loses overnight.

The S&P/ASX 200 benchmark was down 13 points to 5419 at 11:53am AEDT. Overnight the Dow Jones closed 20.90 points down, losing 0.13% to 15,618.22.