Local authorities will receive a 5% uplift in funding to help support local small businesses.
Local authorities in England have been told they will receive an extra £617m to help small businesses that have fallen outside the scope of the business grants fund scheme.
This includes bed and breakfasts that pay council tax rather than business rates, and small charity properties that would meet the criteria for Small Business Rates Relief.
Councils have also been asked to prioritise businesses in shared spaces and regular market traders.
Local authorities will be given discretion to make payments of any amount under £10,000 to businesses that can demonstrate a significant drop in income due to Covid-19 restrictions.