- NAB provides funding for First Nations businesses guaranteed by Fortescue
- The guaranteed loans will unlock capital for First Nations businesses, supporting NAB's commitment to double its lending to First Nations businesses over three years
NAB and Fortescue have started a new loan guarantee initiative for First Nations businesses looking to break into the mining industry or scale up their existing business.
The agreement is another way NAB is working to help grow the First Nations business sector.
The guaranteed facilities mean a First Nations business with a Fortescue supplier contract will be able to access capital they need to fulfil their contract.
This will be done by Fortescue guaranteeing the security required to ensure responsible lending thresholds requirements are met for NAB to provide capital to eligible businesses.
NAB Executive, Indigenous Business, Noel Prakash, said NAB's strength in business banking would support First Nations businesses to thrive.
"First Nations businesses often face challenges in securing the capital needed to win contracts and thrive in their industry," Mr Prakash said.
"Research shows this is often because some Indigenous business owners have less equity to leverage due to lower intergenerational wealth transfer and lower rates of home ownership than non-Indigenous business owners.
"The success of First Nations businesses benefits the entire community, and with Fortescue's assistance, we are excited to support more Indigenous businesses across Western Australia and Australia."
Fortescue Metals Chief Executive Officer, Dino Otranto, said partnerships like this were key to sparking growth and creating ripple effects that benefit communities.
"We strongly believe procurement is a powerful lever for social and economic change, and this partnership with NAB will ensure we are able to continue providing First Nations businesses with the tools to help create value and sustainability.
"It builds on other initiatives such as our pioneering Billion Opportunities program which has provided over A$5 billion in contracts and subcontracts to First Nations businesses since 2011, opening doors for hundreds of businesses across Australia."
One of the first businesses to benefit from the guaranteed loans is King Kira Group, a 100% Aboriginal-owned and operated business that provides a range of services to the mining sector in Western Australia.
King Kira Group Founder and Managing Director, and Nyiyaparli/Paylku woman, Tammy O'Connor, said the loans would help to ensure the success of First Nations businesses in the area.
"These loans are a game-changer for Indigenous businesses like ours. With the support of NAB and Fortescue, we can secure more contracts and ensure sustainable growth, ultimately empowering our community and contributing to a more inclusive industry," Ms O'Connor said.
The partnership supports NAB's ambition to more than double its lending to First Nations businesses and community organisations to at least $1 billion over the next three years.
