The Sydney lockdown has now been extended to three weeks.
Federal Treasurer Josh Frydenberg has so far rejected a request from the state government to reinstate the JobKeeper wage subsidy program for struggling businesses.
The Deputy Lord Mayor of the City of Sydney, Jess Scully, says small businesses are doing it tough.
"There are a lot of businesses, particularly in the hospitality sector, who are losing so much money every week. And they have already burned through their reserves and they need substantial support."
NSW Treasury estimates the shutdown will cost the state economy $2.5 billion.
NSW Treasurer Dominic Perrottet says grants of between $5,000 and $10,000 are being made available for small businesses -- with payroll tax deferral for employers.
The rescue package is expected to be expanded to include businesses and sole traders with an annual turnover of less than $75,000.
Restaurants in regional areas also face heavy losses, during what should have been a busy school holiday season. Nathan Tomkins owns a seafood restaurant in Port Macquarie on the north coast of New South Wales.
"Once the COVID lockdown was announced, we went from basically 200 people down to 50, immediately. It was just an absolute disaster."
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