NAB has signed a Memorandum of Understanding (MoU) with Indigenous Business Australia (IBA) to work together on the design and development of an Indigenous Business Guarantee.
The first major Australian bank to develop an Indigenous Business Guarantee with IBA, it will mean NAB and IBA can support more First Nations businesses to access capital via NAB's specialist bankers and commercial lending solutions.
This will be done by IBA guaranteeing a portion of the security required to ensure responsible lending requirements are met for NAB to provide capital to eligible First Nations businesses.
Noel Prakash, NAB Executive, Indigenous Business Banking, says NAB's business banking strength can support First Nations business growth.
"NAB has set a new target to more than double our lending to First Nations businesses and community organisations to at least $1 billion over the next three years.
"Businesses play an integral role in strengthening First Nations leadership and creating opportunities for communities succeed. First Nations businesses are leading the charge by driving self-determination, and rapidly improving financial capability and inclusion.
"Working with First Nations people, we want to strengthen financial resilience, increase business and employment opportunities, and remove the barriers that have traditionally made it hard for First Nations customers and businesses to access financial services."
IBA CEO, Kirsty Moore, leads the Commonwealth entity with a vision for a nation in which Aboriginal and Torres Strait Islander people are economically independent and an integral part of the economy.
"IBA exists to enhance and support the economic development opportunities of Aboriginal and Torres Strait Islander people across Australia. This collaboration with NAB serves to broaden IBA's impact within the business sector.
"The growth of the First Nations business sector is incredibly exciting. With over 65,000 years of existence, they bring a wealth of knowledge and innovation as our original entrepreneurs.
"This collaboration with NAB works to bring resources together that benefit our First Nations businesses and we look forward to seeing this sector grow."
The MoU will also look to improve financial education and training to opportunities available for First Nations business owners.
