The Shooters, Fishers and Farmers Party has been calling for the government to provide cash-based assistance for regional communities since July last year.

But Mr Butler has renewed the calls in light of the federal government's ban on gatherings of more than 500 people in response to coronavirus or COVID-19.

He says the stimulus package already announced by the federal government was not broad enough.

As well as giving $750 to pensioners and those on government payments, the package also includes an increase to the instant asset write off threshold from $30,000 to $150,000.

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Business NSW is also calling for the government to intervene to help limit the impact of COVID-19.

Mr Butler said he understood the government needed to make the call to ban gatherings to stop the spread of COVID-19, but the impact of the cancellation of events would be devastating.

"Our regional economies, especially agriculture dependant economies, had a small ray of hope with some rain, and a season of local shows, race carnivals, festivals and themed events promising to bring some much needed turnover to small business in regional communities," he said.

"Our town's economies were already greatly compromised by drought. This blow of lost revenue for our towns that are now unlikely to have gatherings of over 500 people makes the need for urgent, cash-based assistance to regional communities, farmers and small businesses more urgent."

Business NSW regional manager Western NSW Vicki Seccombe said the federal government had delivered its package of support measures and now the state government needed to follow suit.

"NSW makes up one third of the national economy, so it is vital our businesses are given whatever support that can be offered," Ms Seccombe said.

"When you consider many of our local businesses are still overcoming the impacts of drought and bushfires, this is the time for the government to leverage its strong balance sheet to support our businesses."

The regional manager called for payroll tax relief, like in Queensland where employers can defer paying the tax for six months.

Ms Seccombe said a stimulus package would send a strong message of support to the businesses "doing it tough" and show them the government was doing all it could to help businesses keep the doors open.