Business boost

By Kath Gannaway
A $10million stimulus package aimed at creating new jobs and attracting business investment in bush-fire affected communities was launched at Marysville on Friday.
Premier John Bumby unveiled the Victorian Bushfire Business Investment Fund (VBBIF) which provides grants of between $50,000 and $4million for capital costs involved in setting up a new business or expanding an existing businesses.
Mr Brumby said the criteria for funding would include the level of economic benefit, the number of sustainable, new full-time equivalent jobs created, the skills, experience and resources of the applicant and the project’s ability to be sustainable without ongoing government support.
The Federal Parliamentary Secretary for Victorian Bushfire Reconstruction Bill Shorten said while a survey of businesses in the fire-affected areas indicated that 95 per cent expected to continue or re-establish their business in the same place, many said they needed help.
The fund has been welcomed by the Liberal/National coalition, but according to Nationals leader and shadow minister for bushfire response Peter Ryan, it does not go far enough.
Mr Ryan said there were concerns businesses would not be able to meet the eligibility criteria because the grants would cover only up to 50 per cent of a project’s capital costs.
“The practical reality for many businesses wiped out from the fire is that they simply do not have enough cash flow to get back on their feet again,” he said.
He predicted that many businesses desperate to rebuild would not be in a position to apply for assistance through the fund.
He renewed coalition calls for an increase in the existing government low-interest loan scheme from $200,000 to $500,000 saying it was currently inadequate.
“If increased loans were available in addition to the grants it would kickstart many businesses that have ceased to operate or have been badly affected and give them the best chance to start back up,” he said.
VBBIF application forms could be downloaded from www.wewillrebuild.vic.gov.au, or obtained from VBBRA by calling 9092 5875. The closing date for applications is 30 June 2010.