Fresh $1.8m for fire-hit Blue Mountains

Bushfire-hit communities around the Blue Mountains are being promised $1.8 million in fresh funds as the recovery continues.

More than 200 homes were destroyed in the bushfires that raged west of Sydney last October.

On Friday, the federal and NSW governments announced an additional $1.8 million to go towards the rebuild, including grants for programs that support small business and community organisations.

"This joint package will drive the economic and social growth of the Blue Mountains community over the next 18 months and build community preparedness for the future," federal Justice Minister Michael Keenan said in a statement.

NSW Emergency Services Minister Michael Gallacher said the new funds came on top of the $11.4 million already provided to support the initial clean-up of the Blue Mountains.

Criteria for the grants are expected to be outlined soon.

Financial assistance was also announced for people in southern and central NSW affected by the January bushfires.

Concessional loans of up to $130,000 are available are available for primary producers and small businesses.

Councils will be given all the funding they need for "emergency work", and can claim for 75 per cent of restoration costs, up to $116,000.

All recovery expenses beyond that will be fully covered.

"The Australian and NSW Governments are working together through the recovery process to ensure that disaster-affected communities can return to normal as soon as possible," Mr Keenan said.