The Andrews Labor Government has welcomed news that the Australian Business Growth Fund will be based in Melbourne, cementing its spot as the home of capital funding.

The $520 million Fund will help small to mid-sized firms expand by taking equity stakes of between $5 million to $15 million, with funds to flow from June 2020.

The Federal Government has revealed the Fund – backed by the four big banks – will be headquartered in Melbourne.

Eligible businesses will need to have annual revenue of $2 million to $100 million and proof of three years of increasing profitability.

The Fund follows in the footsteps of the Labor Government’s $250 million Victorian Business Growth Fund, which was announced earlier this year.

Working with First State Super and VicSuper, the Victorian Fund will also provide small to medium enterprises with the capital they need to grow and create jobs.

A competitive process is currently underway to appoint an independent fund manager, while the fund’s investment guidelines and further opportunities will be outlined next year.

The Labor Government is providing $50 million to the Victorian Fund, which will create thousands of jobs by investing in established Victorian businesses with compelling potential for growth and jobs creation.

The Fund will complement the Government’s programs which already support businesses, such as the Victorian Jobs and Investment Fund and regional payroll tax cuts announced in the Victorian Budget 2019/20.

Victoria is home to more than 600,000 small businesses that contribute 36 per cent of the state’s output in goods and services and generate almost half of private sector jobs across the State.

The state also has 34 per cent of superannuation funds in Australia, including VicSuper, Hostplus and AustralianSuper.