An extra £3.4m in Covid support will help customer-facing Manx businesses "navigate a period of uncertainty", the enterprise minister has said.
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A £6,000 grant is now available for firms that saw sales drop in December after a surge in Covid cases.
A survey found that more than half of Manx customer-facing firms had to close or reduce hours due to staff shortages.
Alex Allinson said self-isolation and customer cancellations had hit the "typically busy festive season".
The December Disruption Scheme has been introduced on top of a separate £9m tranche of support offered in December to support firms over the wider winter period.
A Treasury spokeswoman said businesses and self-employed people would be able to apply for both grants if they can show evidence of a "significant reduction in turnover".
The announcement comes after a snapshot poll conducted in January by the Isle of Man Chamber of Commerce of about 220 customer-facing firms.
More than 36% had to reduced opening hours over Christmas and just under 16% had to close, while more than 60% saw sales drops by at least a quarter in comparison to the same period in 2020.
The survey also found a combination of staff absences and lost footfall was "so severe" that more than 60% of respondents wanted testing rules to be scrapped.