$25m in grants for cyclone-hit businesses
The government has announced it will provide an initial $25 million in grants to help cyclone and flood-hit businesses in their recovery, with up to $40,000 available per company.
The grants are part of a $50m emergency support package agreed by cabinet in the wake of the recent devastating weather systems that led to flooding and widespread damage across parts of the North Island.
Grant Robertson, Minister for Cyclone Recovery, says the grants will be distributed by “local delivery partners”, who will assess the needs of each business, with the priority to get this initial help out as quickly as possible.
“The government has provided the funding to address the immediate cashflow needs of businesses,” he explains.
“This includes those that have been impacted due to barriers to customer access, ability to source stock, supply chain issues, inability to operate as usual due to physical damage to equipment or premises, or delays in insurance assessment and repairs.
“The initial allocation from this fund will be capped at $40,000 per business while we assess the overall demand for the fund. Further allocations to businesses that access this initial funding are possible.”
Business will need to meet certain criteria to qualify for the grants, including being in one of the following regions – Northland, Auckland, Bay of Plenty, Coromandel, Tairawhiti, Hawke’s Bay or Tararua.
Applicants can either be self-employed, a sole trader, or an employer, and the business must otherwise be viable before and after the flooding.
Robertson adds this is the first stage of government support for affected businesses and communities, with further announcements expected to be made.
The government says it will be working one on one with larger businesses that may require more than $40,000 in support.
Along with the grants scheme, $250,000 is being given to the Employers and Manufacturers’ Association to extend the reach of its employer helpline and $600,000 for Regional Business Partners to increase the amount of business advice it can offer.
The First Steps mental wellbeing initiative is also available for use by businesses in affected regions.
The agencies distributing the $25m in business support grants are NorthlandInc, Auckland Business Chamber, Toi Economic Development Agency, Thames Coromandel District Council, Trust Tairawhiti, Hawke’s Bay Chamber of Commerce and Tararua District Council.
For more details about the government grants and how to apply, click here.
