The package primarily includes a Small Business Support Program, which will offer businesses with annual turnover of between $75,000 and $50 million that suffered a decline in turnover of at least 40 per cent in January a payment covering up to 20 per cent of their weekly payroll through February.

The support payments, up to $5000 per week, will be processed via Service NSW. Applications are expected to take between five and 15 business days to process.

The government has also increased the Small Business Fees, Charges and RAT Rebate by 50 per cent from its $2000 limit to $3000. Commercial landlord relief was also extended until March 13.

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Business Hunter CEO Bob Hawes says the regional business chamber was "supportive" of the government's package because "at the moment every bit counts".

"This package isn't going to help every business and I am concerned the pendulum has moved too far for some, but if it can save some from dipping into savings to keep their cash flow going and instead being able to rely on some level of government assistance - that's going to be great," he said.

"It's not going to help everybody, but every little bit helps and counts at the moment."

Taiyo Namba, owner of Honeysuckle restaurant Nagisa, equally welcomed "any support" but said he was disappointed there would not be retrospective payments for losses sustained during December and January.

"The problem is, we had a shit year and were relying on that December trade, but we actually went backwards in December. We got hit hard in Newcastle," he said.

"Every cent counts though and any support we can get, we'll take. The mental stress on business owners has been incredible. You just can't switch off."

Premier Dominic Perrottet said case numbers were falling, but the government was determined to support the most affected businesses.

"This targeted package provides support for businesses who experienced cashflow issues and the immediate economic impacts of the Omicron outbreak," he said. "NSW is tracking better than expected and confidence is returning. We've got the backs of businesses, as we have throughout this entire pandemic."

However, the state opposition was critical of the government for not offering businesses support sooner.

"Businesses were asking for support back in December. This should have been much faster, and it should have been at similar levels to last year," NSW Labor leader Chris Minns said.

Newcastle state MP Tim Crakanthorp described the support package as "half-baked" and said it would do "absolute nothing to compensate for the Christmas and New Year period".

"In what should have been the busiest time of the year for retail and hospitality, where they expected to recoup some losses from the 2021 lockdown, Newcastle was a ghost town," he said.

"This package is nothing more than a box tick so this government can boast that they 'helped', but doesn't come close to compensating for the damage their disgraceful 'let it rip' did."

He added: "This package has been designed to disqualify businesses who so need help, as receiving support is contingent on losses still being at 40 per cent through February.

"This eligibility condition is in place despite the Premier's persistent and arrogant rhetoric that the state's economy is in a good place and businesses are bouncing back."