Blackpool Council leader Lynn Williams said those unable to work in the city would receive a furlough arrangement paying 67 percent of their salary, but added businesses needed more support.
She said: “Essentially we had to agree to this deal or we would not have got a share of anything. And we were also at risk of more businesses going into the closed list.
“But we will be working with the government in terms of how the money will be delivered to businesses, to ensure that money goes to the businesses that are most affected in Blackpool and across Lancashire.”
Ms Williams added: “Obviously we have a different economy. Lancashire is very varied and Blackpool stands out by itself. Our economy is going to be incredibly affected and we wanted more support for our businesses.”