BOQ is providing funding flexibility to Australian SMEs in a challenging economic environment
The Australian SME landscape: Resilience amidst recovery
Small and medium-sized enterprises (SMEs) are the backbone of the Australian economy, making up over 97% of all businesses and providing employment to millions of Aussies.
An improving Australian economy helped SMEs in the second half of 2025, although cost inflation remained an issue.
SMEs started 2026 with the news of a rise in interest rates; come March, the Reserve Bank of Australia (RBA) had increased rates by 50 basis points.
BOQ steps Up: The $10 million SME lending policy
Access to sufficient finance has always been an issue for SMEs. Recognising this, the Bank of Queensland (BOQ) has taken decisive action to back the SME sector.
Through a recent appetite change, BOQ has approved changes in its SME lending policy to increase total commercial lending exposure up to a maximum of $10 million and total lending exposure (including all BOQ lending) up to $15 million, subject to credit and eligibility criteria.
This move is designed to help ensure greater funding flexibility for diversified SMEs across Australia, including those operating in rapidly growing regional ‘growth corridors’ now treated as capital cities for lending purposes.
“At BOQ, we recognise that SMEs are the lifeblood of Australia’s economy,” says Karen Carter (pictured), general manager, commercial third party, BOQ Business, “and our broker community is part of this sector”.
She adds: “We developed our $10 million lending policy to help provide business owners with the confidence and support they need to invest in their future, whether that means expanding, hiring new staff, acquiring their premise, or navigating ongoing financial pressures.
“Our goal is to partner with SMEs for the long haul and provide the flexible solutions this sector truly deserves.”
How the policy supports SME growth
Higher lending limits: SMEs may now be able to access up to $10 million in business lending, with the policy accommodating businesses with total exposures up to $15 million. This is a significant uplift for businesses looking to scale or diversify their operations.
Inclusion of growth corridors: BOQ’s policy now recognises key growth corridors as capital cities, making it easier for businesses in booming regional areas to access the same lending terms as those in metropolitan locations.
Flexible loan structures: BOQ offers competitive terms, including interest-only periods and principal and interest options, giving SMEs the flexibility to manage cash flow according to their individual business cycles.
Loan-to-valuation ratios (LVR): BOQ typically provides LVRs in line with market standards, allowing for robust security structures while supporting business borrowing capacity. This can include LVRs up to 90% or more for quality collateral, subject to credit assessment and policy parameters.
Range of purposes: The $10 million policy can support a wide variety of business needs, including purchasing commercial property, financing equipment or vehicles, funding working capital, refinancing existing debt, or supporting expansion into new markets.
Why this matters for Australia’s SMEs
BOQ’s expanded lending capacity is a lifeline for SMEs striving to recover, adapt, and grow in a tough economic environment. The combination of higher exposure limits, broader geographic eligibility and flexible loan features means more businesses can access the funding they need, when they need it most.
For small businesses, access to capital is not just about survival, it’s about opportunity. Whether it’s investing in a larger property, refinancing, or entering new markets, the ability to secure sufficient finance is crucial to realising business ambitions and driving Australia’s economic recovery.
BOQ's valued broker market may also be eligible to use this offer to purchase a premises as well.
The road ahead
As SMEs continue to face headwinds, BOQ’s commitment to backing the sector stands out as a proactive and practical response to real-world challenges. By listening to business owners and adapting their policies, BOQ demonstrates that it is more than just a lender, it’s a genuine partner to Australian small business.
To learn more about BOQ’s SME lending options and the $10 million policy, business brokers can contact their local BOQ Commercial Broker BDM for advice and support.
Supporting the SME market isn’t just good business – it’s essential for Australia’s economic future. With policies like BOQ’s, small businesses have a fighting chance to bounce back and thrive in the years ahead.
