The state government is stumping up financial support for small business to buy rapid antigen tests (RATs) to help keep their employees safe and a new Small Business Support Program to assist businesses to help keep their staff employed.

Premier Dominic Perrottet said it was to help those hardest hit by the latest COVID-19 wave.

"This targeted package provides support for businesses who experienced cashflow issues and the immediate economic impacts of the Omicron outbreak," he said.

The state's peak body for business has welcomed the package, which is to start from Tuesday and is geared at entities with a turnover of between $75,000 and $50 million.

"Business has been crying out for support because of the dramatic impacts that Omicron has had on their operations, especially in what many hoped would be their busiest time," Business NSW western NSW regional manager Vicki Seccombe said.

"The government has done a great job in designing a package that will help a wide variety of business owners who've suffered a downturn in their operations through no fault of their own, and now what's important is that the money gets out the door and into the hands of those most in need.

"Our most recent business conditions survey published earlier this month found 40 per cent of NSW businesses had cashflow to last them for the next three months, so this relief will be widely embraced by our western NSW business community.

"What's crucial now is that customers have the confidence to return to businesses and do their shopping in a safe manner.

"Western NSW businesses are doing the right thing in ensuring their staff are healthy before commencing shifts - together our local economy can roar back into life if we abide by the rules and return to our favourite businesses."

Dubbo RSL Club general manager Gus Lico said the past couple of years had been "turbulent to say the least but nothing like the current".

"As a consequence of underperformance in trading and staff isolations, we have had to review our operations in all areas and multiple businesses for the time being," he said.

"We are not alone and the whole of the hospitality industry would be in the same boat.

"We can only hope that these variants are under control and that the Premier announces better outcomes at the end of February."

Of the package, Mr Lico said "something is always better than nothing at all".

The organisation has multiple businesses - among them food and beverage, accommodation and functions and events - and they are costly to operate, he reports.

"We employ in excess of 200 people, there are a lot of families and mouths to feed," Mr Lico said.

"The package proposed will assist but nothing to where the industry would rather be.

"We were told that with double vaccination will come more freedom and fingers crossed that with the booster we can realize what was first said.

"Failing this, there could be many people out of work in small businesses and unfortunately ours."