Hobart businesses raise concerns with State Government’s Small Business Hardship Grants program

Several Hobart businesses have been left disappointed over the state government’s “inconsistent” small business hardships grant, with one owner forced to dip into his savings and superannuation.

TWO Hobart businesses knocked back for State Government financial hardship grants have told of their disappointment with the scheme.

Machine Laundry Cafe owner Josh Clarke said his Salamanca eatery was forced to close for two months, a period he said usually equated to about $300,000 in turnover.

But his application for a $15,000 Small Business Hardship Grant was knocked back, and the business instead received $4000.

“Apparently we weren’t as financially affected as other applicants ... [but] I know other businesses received a grant that didn’t close,’’ he said. “It’s very frustrating.”

Mr Clarke claimed there were inconsistencies in the application of coronavirus restrictions between smaller businesses like cafes and larger retailers.

He said before coronavirus restrictions, the cafe had 20 staff on the books but only a third of them are working at the moment.

Under current rules, they are now allowed to have 10 diners inside and 10 outside.

“[Before coronavirus] my business was successful. I’m lucky I’ve got such a good following and great customers so I’ll get through it,’’ he said.

Machine Laundry Cafe, Salamanca was forced to close, however did not receive much cash help from the State Government.

The owner of West End Newsagency in Hobart’s Harrington St, Mark Heffernan, said his application was also rejected. He said he closed the store in early April but reopened two weeks ago.

“I’ve had to draw into my personal savings and into my superannuation to keep things afloat,’’ he said.

Mr Heffernan said the business was now faced with an uncertain future and the cash injection would have been a significant boost.

Minister Sarah Courtney. Last regular Tasmanian Government coronavirus press conference 4th June 2020. Picture: RICHARD JUPE

Small Business Minister Sarah Courtney said the Government had funded 18,200 grants to Tasmanian small businesses.

Ms Courtney said the grants were subject to a “competitive merit-based assessment”, where businesses were required to demonstrate hardship and other criteria.

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More than 1300 businesses have received $15,000 funding under round one of the program, with round two seeing 1540 receive $4000.

Ms Courtney said the Department of State Growth would review applications by businesses who believe they have been unfairly assessed.