The government is introducing a subsidy to assist small businesses and sole traders affected by the Rena grounding.

Social Development Minister Paula Bennett today announced the Rena Support Subsidy today.

An oil boom being deployed at Maketu Estuary. Photo Maritime New Zealand.

'We're providing support to businesses that either can't operate or have experienced significant loss as a result of the Rena grounding and cannot pay employees,” says Paula.

'This Rena Support Subsidy will give the worst-affected businesses, which rely on the sea and coastline, a hand to keep paying their staff.”

To be eligible for the subsidy the business must operate within or near the maritime exclusion zone.

They will also need to be able to show they have already used any insurance cover and are unable to relocate their operation.

'From Monday, businesses that meet these criteria and have no other way to pay their staff can apply for the six week support package.”

The $500 subsidy for full-time staff and $300 subsidy for part-time staff will be available for sole traders and small businesses (with less than 20 employees).

The Tauranga Chamber of Commerce has advised it believes there is a maximum of 120 employees affected.

The subsidy's fund is capped at $360,000 which is enough to cover six weeks support for those 120 employees.

The size of the fund will be addressed if the scale of the disaster changes.

Economic Development Minister David Carter is encouraging businesses affected by the Rena grounding to connect with a range of services offered through the Tauranga Chamber of Commerce, including business advice, mentoring and training options.

'To immediately assist, businesses directly impacted will be able to access free mentoring through Business Mentors NZ.”

To apply for the Rena support package, businesses should call the employer helpline on 0800 778 008.