Govt approves $25 million extension for cyclone-affected businesses

Finance
  • $25 million boost to support more businesses with clean-up in cyclone affected regions, taking total business support to more than $50 million
  • Demand for grants has been strong, with estimates showing applications will exceed the initial $25 million business support package
  • Grants of up to a maximum of $40,000 per business, to be distributed by local organisations in affected regions

The Government is providing a further $25 million in grants to help more businesses in cyclone-affected regions with the clean up and get them back up and running. This follows an initial $25 million emergency package, which also included business support and advice services.

Grant Robertson said the extension of funding provided help to more businesses whose operations had been severely disrupted by the flooding and cyclone and help address their immediate cashflow needs.

“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,” Grant Robertson said.

“The uptake of grants has been strong. For example, in Tairāwhiti 372 applications for business support have been approved with $4.1 million paid out.

“Based on the applications to date, it is clear that the initial $25 million business support package announced in late February is likely to be oversubscribed. Ministers will ensure that support will be targeted at those regions where the need is greatest.

“The extension of funding would not change the current settings or intent of the grants, but would allow more firms to be supported up to the $40,000 per-business cap.

“We are committed to helping people and businesses recover from the cyclone. We will continue to closely monitor the needs of local communities and work with local agencies, iwi and councils as the regions move to recovery and rebuild from these extreme weather events.

“This work will include exploring further support for larger affected firms, drawing on lessons learned from COVID-19. It will also be informed by the Cyclone Recovery Taskforce, whose role is to advise on recovery priorities and the planning and sequencing of recovery efforts.” Grant Robertson said.

Today’s announcement adds to the $55 million in support that is already going out the door to our farmers and growers and a new recovery visa to help bring in more workers to help with the recovery.

The agencies distributing the business support grants will be:

  • NorthlandInc
  • Auckland Business Chamber
  • Toi Economic Development Agency
  • Thames Coromandel District Council
  • Trust Tairāwhiti
  • Hawkes Bay Chamber of Commerce
  • Tararua District Council
  • Masterton District Council