Cyclone recovery funds for businesses doubled
Overwhelming demand for help from businesses affected by Cyclone Gabrielle has seen the government double its financial support.
Finance Minister Grant Robertson announced on Wednesday its package for individual businesses in cyclone-affected regions will double from $25 million to $50m, as the scale of the cyclone becomes more clear.
The increase will allow businesses affected more severely to get support for immediate cashflow needs, although a cap of $40,000 per business remains.
Funding will continue to be distributed by local organisations in affected regions.
‘‘As more is known about the scale of the cyclone damage, it is important that the local agencies on the ground working with affected businesses have the financial support to deal with the most pressing needs in their regions,’’ Robertson said.
‘‘The uptake of grants has been strong. For example, in Tairāwhiti 372 applications for business support have been approved with $4.1m paid out.
‘‘Based on the applications to date, it is clear that the initial $25m business support package announced in late February is likely to be oversubscribed.’’
The news comes as the chief executive of Northland Inc, Paul Linton, was travelling to Wellington to advocate for more support in Te Tai Tokerau.
More than 600 Northland businesses applied for government support – oversubscribing the $1.78m allocated for Northland, he said.
Te Tai Tokerau businesses are really struggling, such as Kaipara kūmara growers, who have lost a year’s worth of crops.
Other Northland businesses such as tourism operators have been affected by successive storms, he said.
As well as the extra funding, Northland businesses want to get the message out to both national and international tourists that the region is open for business and welcoming for visitors.
‘‘We’ve had people ringing our office from overseas asking ‘is it safe?’ That’s the perception, not the reality – Northland is open, the roads are open,’’ Linton said.
He encouraged any Northland business in need of help to check the grant criteria and apply online.
The business support grants will be distributed through Northland Inc, Auckland Business Chamber, Toi Economic Development Agency, the Thames Coromandel District Council, Trust Tairāwhiti, the Hawke’s Bay Chamber of Commerce, the Tararua District and Masterton District councils.