Small business forced to compete for support

Tasmanian Labor
  • Support scheme oversubscribed, eligible businesses may be denied support
  • Government must guarantee support for all eligible businesses
  • Clarity needed faster as businesses make difficult decisions right now
  • The state government's COVID-19 small business support scheme is falling short when it comes to equitable support for applicants.

    Shadow Minister for Small Business Anita Dow said many small businesses may not receive support, even if they can demonstrate they are eligible.

    "Thousands of small businesses have been forced to close or seen significant downturn as a result of COVID-19.

    "We applaud the Tasmanian government for putting in place emergency relief measures. But all applicants should have a level playing field.

    "Small business owners are being told the scheme is oversubscribed, and that not all applicants can be supported.

    "Those with the best application against the eligibility criteria will receive financial support, others will not.

    "If the scheme is oversubscribed, it's because too many small businesses in Tasmania are suffering.

    "The solution is not to make businesses compete against each other for funding, but to increase the level of funding so that all businesses in need can equitably access support."

    Ms Dow said small businesses are also waiting far too long to hear the outcome of their application.

    "We are hearing from small business owners who are being told it will take more than a month to assess their application.

    "These businesses are having to make decisions right now about their future, based on the information they have in front of them today.

    "Having to wait more than a month to find out whether they will receive the support they are eligible for makes those decisions harder, especially if they eventually find out they have been denied support.

    "We call on the government to guarantee support to all eligible businesses and increase resources so that applications can be processed faster.

    "Small business is the backbone of many Tasmanian communities and must be supported to survive this unprecedented crisis."

    Anita Dow

    Shadow Minister for Small Business

    /Public Release. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).View in full here.