Awatoto, which includes many industrial businesses, was hit hard by the floods. Photo / Ian Cooper

Another $25m for cyclone-affected businesses as Govt support tops $100m

Author: Michael Neilson,
Publish Date: Wed, 15 Mar 2023, 2:12pm

The Government has announced another $25 million will be available in grants for businesses in cyclone-affected regions to assist with the clean-up, taking such support to over $100m.

Today’s announcement follows an initial $25m emergency package, which also included business support and advice services, and $55m for farmers and growers. The Government has also brought in a new recovery visa to help bring in more workers.

Affected businesses are able to request up to $40,000 in grants, distributed by local organisations in affected regions.

Minister for Cyclone Recovery Grant Robertson said demand for grants has been strong, with estimates showing applications will exceed the initial $25m business support package.

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, he said.

“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.

“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.

“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,” Robertson said.

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.”

The agencies distributing the business support grants will be: