One of the Launceston City council's lifelines to small businesses, a digital innovation grant, has had its funds dry up due to unprecedented interest from local companies.
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Grant submissions were temporarily suspended on Tuesday but a date for the grant's reopening has not been announced.
The level two grants allowed small businesses to seek funding of up to $7000 to adapt their business practices to new technologies.
Mayor Albert van Zetten said the council had been overwhelmed by the response to the innovation grants by local companies.
"Such has been the response to our grants programme, we are unfortunately having to hit pause on accepting any more applications for our level two grants," he said.
"Essentially, all of the allocated funds have been exhausted."
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The business innovation grants were a part of the council's $8.7 million Community Care and Recovery package.
The council allocated $650,000 to the level one and two digital innovation grants program.
Cr van Zetten said businesses could still apply for the $1000 level one grants for professional advice and assistance, until such time as those funds were exhausted.
"We fully understand how difficult this pandemic has been on our business sector in Launceston," he said.
"Given the incredible response we've had after just three working days, there's obviously a number of businesses out there desperate to try new and innovative ways of operating as they adapt to the effects of the COVID-19 pandemic."
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