Applications for business support funding have skyrocketed to more than 700 in just five days, a Hawke’s Bay Chamber of Commerce spokeswoman says.

The Hawke’s Bay Chamber has been chosen as the local delivery partner to administer grants on behalf of the Ministry for Business, Innovation and Employment of up to $40,000 per business. Applications opened last Thursday.

In response to challenges faced by the primary sector and other businesses in the wake of Cyclone Gabrielle, central government announced a $50 million nationwide support package, half of which was set aside for the primary sector and half for other businesses. 

The Chamber has received a portion of the $25 million non-primary sector business support funds, and because Hawke’s Bay was one of the hardest hit regions it’s getting a larger piece of the pie, although the spokeswoman could not say how much. The grants will be primarily for businesses that have experienced cash flow and supply chain disruption as a result of the storm, or those that have been separated from their customers by roading disruptions and the like.

On Monday, the Ministry for Primary Industries provided a further boost of $26 million nationwide to aide recovery efforts for farmers and growers. These grants are administered through MPI.

The Chamber has ‘spread the net’ as wide as it could in terms of getting information about the grant to businesses across the community including to those in Central Hawke’s Bay and Wairoa, and applications have come in from a wide variety of different industries, she said.

Delays in insurance assessment and repairs add another layer of difficulty, as the storm caused  significant damage to property, equipment and structures causing cashflow headaches. Many businesses were unable to source stock and deal with the disruptions to normal business.

According to data collected by the Chamber and Hawke’s Bay Tourism last week, 41% of respondents were open and operating at close to normal capacity, indicating they were able to weather the storm. 

But another 21% expressed concern about their cash flow, with some reporting business projects for the next three months had dried up, causing them to worry and wonder how they will pay staff. Some were looking at other avenues for raising cash, while others were attempting a delicate balance between investors and borrowers.

About 11% reported concerns over staffing shortages and wages, while 13% were concerned about supply chain disruption impacting access to goods and exports. In particular the Napier/Taupo Road closure has had a severe impact on some businesses.

Ten percent of respondents expressed concerns about infrastructure, including water and roading. Some businesses, such as those involved in machinery maintenance and manufacturing, are really feeling the pinch in relation to out-of-region projects. What was usually a two-hour drive from Napier to Wairoa was now projected to take15 hours due to road closures through State Highway 2. 

The Chamber also advised that government was working with First Steps to provide mental health and wellbeing support to business owners, who can could tap into a funding pool of $1 million to work one-on-one with a counsellor to process trauma and be better prepared to support their staff through challenging times.

Businesses in Central Hawke’s Bay can contact development lead Bevan Trotman at the Waipawa Library.

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