Govt approves extra $25 million extension for cyclone-affected businesses

• $25 million boost to support more businesses with the clean-up in cyclone affected regions, taking total business support to more than $75 million
• Demand for grants has been strong, with estimates showing applications will exceed the initial $50 million business support packages
• Grants of up to a maximum of $40,000 per business, to be distributed by local organisations in affected regions

The Government is providing an additional $25 million to help more businesses in the clean-up from the damage caused by Cyclone Gabrielle affected regions and get them back on their feet.

This follows earlier support of $50 million to assist the business community with their immediate cashflow needs.

“The priority has been to get businesses back up and running as quickly as possible from the impact of the cyclone, working through the local agencies on the ground who know their area best,” Grant Robertson said.

“Demand for grants has been strong, with applications to the local providers managing the funding exceeding the $50 million allocated. Based on the most recent assessment an additional $22 million is required to meet the additional demand, with around 5,800 applications received.

The extra funding allow more firms to be supported up to the $40,000 per-business. As with the previous funding, it will be managed at a local level by agreed providers.

“The split of this additional funding between regions will be based on the latest available data. Ministers are committed to ensuring that it is focused on those regions where the need is greatest.

“Ministers have agreed that all applications for funding under this process will close no later than the end of April.

“We are committed to helping people and businesses recover from the cyclone. The way we do that will change as we shift from the response to recovery phase will change. We will continue to closely monitor the needs of local communities and work with local agencies, iwi and councils as we move from response to the recovery and rebuild from these extreme weather events.

Government support to date:

• An initial $250 million for Waka Kotahi and local councils to assess and fix roads
• $74 million for affected farmers and growers to clean up and re-establish their businesses
• $75 million for businesses with immediate costs and clean-up – to be distributed by local delivery partners in the affected regions
• $5 million to Mayoral Relief Funds
• More than $65.8 million in Civil Defence Payments
• Inquiry announced into forestry slash and land use after Cyclone Gabrielle
• A new Recovery Visa created to help bring in additional specialist workers
• Temporary Accommodation Service activated in affected regions
• Cyclone Gabrielle Appeal Fund Launched along with a special Lotto Draw on Saturday 18 March
• $15 million short-term relief package to support Māori communities
• A further $17.5 million to support communities and community providers
• $3.25 million to support the immediate mental wellbeing needs of people impacted by Cyclone Gabrielle
• $15 million for councils to remove rubbish
• Cyclone Taskforce set up, chaired by Sir Brian Roche, to align locally led recovery plans with Government and private sector.