There are fears businesses will be forced to close because they cannot recover from the double financial hit of bushfires and coronavirus.
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A survey of 390 businesses by Indi MP Helen Haines revealed 97 per cent of respondents had been affected - they lost an average of 71 per cent of their normal revenue and 32 per cent lost all revenue.
The results also showed 35 per cent of the businesses have had to lay off employees.
"I am actually shocked at how bad it is ... To hear that directly from the businesses that we know and love across our region - these are members of our community who are demonstrating very conclusively how shocking the impact has been on them," Dr Haines said.
"It's inevitable that many of these businesses won't be able to survive."
The businesses said they needed more government support, so she wrote to Treasurer Josh Frydenberg on Friday with suggestions.
These included tax breaks, innovation grants and no-interest loans for businesses; immediate funding for roads, rail and tourism infrastructure; and grants for events and other initiatives to rebuild tourism.
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One hospitality operator who responded to the survey said four junior staff had lost their jobs during the pandemic.
"Our adult staff have all had their hour reduced. Having no Easter trade has meant we lost $25,000 - first time in our long history we shut three days of the long weekend," they said.
Senator Jane Hume responded to Dr Haines on Friday, saying $3.5 million has been approved to get major works started on the McKoy Street overpass and Beechworth Honey and Bridge Road Brewers had each been awarded $100,000 grants.
"This investment will not only strengthen these businesses and create jobs, it will provide a much needed confidence boost for the whole region as we face this unprecedented pandemic and feel the affects of a devastating bushfire season," she said.
But Dr Haines said that money was coming regardless of the pandemic.
"No one would deny the government had put in significant support packages. What I'm saying is that for some businesses in this region ... have been hit twice and the support they need, needs to come immediately and it needs to be targeted to their situation," she said.
Businesses that responded to the survey included cafes, shops, artists, healthcare providers, gyms, snow-sport operators and hotels.
Some 64 per cent of respondents were from the small bushfire-affected shires of Alpine and Indigo.
The 16 questions asked in the survey included issues about business demographics, the degree of impact of the dual crisis, JobKeeper payments and open-ended questions prompting comments to help illustrate individual situations.