Big banks to set up JobKeeper hotline, fast-track finance for small businesses

Formal applications for the $130 billion program opened on Monday, with 275,000 businesses already applying. More than 900,000 businesses have registered their interest in recent weeks.

Under the program businesses are required to pay the $750 weekly payment to staff and then be paid in arrears by the government.

"It was an integrity measure as part of the system that businesses had to pay their staff before receiving their first payment," Mr Frydenberg said.

But in an acknowledgement that many small and medium businesses don't have the cash-flow to be able to make the payments, the Treasurer held a telephone hook-up with Tax Commissioner Chris Jordan and the bosses of the big banks on Thursday morning.

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Now NAB, ANZ, Commonwealth and Westpac will set up a dedicated hotline for businesses wanting to access bridging finance to make the payments, and Mr Frydenberg said the banks had agreed to fast-track applications from businesses for the finance.

"We emphasised the need for the banks to provide the support to those businesses," he said.

"So our message today is if you are a business or a not-for-profit operation that is eligible for the JobKeeper payment, as required, you need to pay your staff ahead of receiving the money from the Tax Office.

"Go to your bank, ring their hotline, ask for that support, and that support will be forthcoming."

Around half of the formal applications so far had come from sole traders, Mr Frydenberg said.

"They cover a whole range of sectors - technical, scientific, financial services, construction, retail, accommodation and the like."

Small business owners in Canberra have reported making the payments in advance has been a challenge, with one small business owner making the payments out of her own personal savings.