Kuwait's National Fund for Small and Medium Enterprise Development will give funding to eligible businesses as the effects of the coronavirus pandemic continue to batter the global economy.
The decision will take effect from March for three months, the Cabinet said.
During its weekly meeting, the Cabinet also told authorities to take measures to postpone the payment of all service fees provided by the state to the owners of suspended business activities.
The Ministry of Health recorded 823 new Covid-19 cases on Monday.
It attributed the sharp increase in infections to people not adhering to social distancing rules by attending gatherings in large numbers.
The total number of cases in Kuwait stood at 179,488 as of Tuesday.
To help contain the spread of the virus, the Cabinet asked Kuwait's fire force and national guard to assist health authorities in enforcing health and safety precautions and to ensure all sectors abide by rules to contain the pandemic.
Minister of Health Dr Bassel Al Sabah held a special session on Tuesday to highlight the importance of taking the vaccine and adhering to social distancing regulations.
Tougher measures will be applied if people do not adhere to the rules, he said.
Dr Al Sabah said the number patients admitted to hospital with the virus had reached 585, while 128 patients were admitted to intensive care units.
Kuwait announced that non-citizens would be barred from entering the country for two weeks from February 7 and the measure is scheduled to end next week. The nation celebrates its national day at the end of the month.
A national holiday will be held from February 25 to 28.
Kuwait received its fourth batch of the Pfizer-BioNTech vaccine as part of a deal to supply the country with doses on a weekly basis, the health ministry said.
As of Monday, the number of people officially registered to receive the Covid-19 vaccine reached 454,522, which included 215,000 citizens and 238,000 residents. The number of people vaccinated so far is 137,000, the Kuna news agency reported.
