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MELBOURNE, Nov 8 AAP

November 08 2012, 12:40AM

Assistance grants and support services will be provided to help rural communities affected by the collapse of Banksia Securities, the Victorian government says.

Banksia Securities, a subsidiary of Kyabram-based non-bank lender Banksia Financial Group, went into receivership on October 25 owing $660 million to about 3000 investors living mainly in regional Victoria.

A Victorian government working group has been set up to help affected businesses and individuals with reskilling, counselling and mentoring programs.

The working group's chairman, Deputy Premier Peter Ryan, said resources had been pooled from across government to provide additional community services and assistance.

The state government will waive the $400 fee to provide access to a four-session business mentoring service, provide reskilling programs to Banksia employees who may lose their jobs and give on-the-ground help for businesses through visits to affected communities over coming weeks.

"These initiatives represent an immediate response to issues being faced by affected communities. The coalition government will continue to undertake work to support local communities in dealing with the impact," Mr Ryan said in a statement on Thursday.

The government would provide funding and support to community groups providing counselling to those impacted, including the local Kyabram hospital, he said.

And the state government would work with the federal government to provide help for those suffering severe financial hardship as a result of the collapse.