2026 Is Shaping Up For Small Business Opportunities For Growth Increase

Access to funding for small business has grown, margins are stabilising, grants are plentiful.

The Reserve Bank’s Bulletin on Small Business Conditions reveals a few choice indicators signalling a steady return for small businesses as we close out the year.

Drawing on data from lenders, economic indicators, and business surveys, the Bank’s October 2025 findings give an encouraging view of what lies ahead for Australian operators in the coming year.

Better Access to Finance for Small Businesses

Securing finance has always been one of the toughest hurdles for smaller operators, even though they account for roughly half of all business borrowing in Australia. The RBA report showed that about one in five small businesses still hits snags when trying to get a loan, usually because of strict criteria, high rates, long waits or the need to pledge personal assets as collateral.

But things are getting better. The ABS reported that lending to small and medium-sized enterprises grew about 6.5 per cent over the past year, largely driven by loans for property, construction and general business purposes. Borrowing costs have dropped by slightly more than the cash rate, and the gap between small and large business loan rates is now among the narrowest on record.

The RBA report also covered the marked rise in specialist and non-traditional SME lenders, offering small businesses more choice than ever before. These players often focus on niche needs like equipment or vehicle finance, and are helping to shake up what used to be a pretty closed shop.

Business finance brokers have made it far easier for small business owners to find the right fit, comparing rates and products across multiple lenders.

All of the big four banks, and many of their smaller competitors, have upgraded their digital systems this year which mean that loan approvals that once took months can now be done in a week, sometimes less. Some have even started easing paperwork for smaller loans and offering unsecured options, though those still make up only a small slice of SME lending.

The Best Small Business Grants for 2026

While lenders are opening their doors a little wider, public programs are also stepping in to strengthen small business capacity heading into 2026 too. 

• Federally, the Energy Efficiency Grants for Small and Medium Enterprises program will continue into 2026, offering up to $25,000 to help businesses upgrade equipment or manage energy use.
• On top of that, the 2025–26 Federal Budget includes energy bill relief, with eligible small businesses receiving discounts on their power bills, plus a $20 million “Buy Australian” campaign to encourage local purchasing.
• Businesses can also look into the temporary $20,000 Instant Asset Write-Off, allowing immediate deductions on eligible purchases to ease cash flow, which has been extended into mid 2026.
• At the state level, programs vary but are targeted funding for innovation, sustainability and regional growth. New South Wales’ Minimum Viable Product grants support early-stage startups developing scalable technology. 
• Victoria’s Small Business Digital Adaptation Program remains open for businesses modernising their operations. 
• Tasmania’s Business Growth Loan Scheme provides concessional loans to businesses seeking to expand or diversify.
• Queensland’s Business Boost and Business Growth Fund programs are expected to re-open in 2026 following strong demand this year.
• The Small Business Growth Grants Program Western Australia provides up to $10,000 in matched funding for small businesses wanting to access expert advice on things like business plans, financial checks, export readiness, and market positioning.
• And finally, in South Australia Powering Business Grants are being made available in 2025–26, offering up to $75,000 for small and medium businesses.

Most states also provide wage subsidies and payroll tax rebates to ease labour shortages by encouraging apprenticeships and new hires. Taken together, these programs offer small businesses a valuable toolkit to save costs and invest in growth through 2026.h.