Questions have been raised over the criteria required and time taken to receive vital funding for hard-hit hospitality and leisure firms.
Businesses in the sectors have been badly impacted by a cancellation crisis due to fears over rising virus cases and new restrictions - while nightclubs have been forced to close. Last night Welsh Government confirmed the Alert Level 2 rules would stay for at least another week.
Welsh Government has announced a £120m fund - a mixture of rates linked grants, similar to those in England, as well as an additional Economic Resilience Fund (ERF).
But to meet the criteria for the ERF firms are required to show they will face a hit to turnover of 60% or more between mid-December and mid-February.
This would mean even a pub or restaurant that faces losing half its revenue would miss out.
Aberconwy MS Janet Finch-Saunders raised the issue with Government and also called for the application process and payouts to be speeded up.
She said: “The present timeline for ERF applications ultimately fails to recognise the urgent need for funding support given that these businesses have already witnessed almost a month of suppressed trade.
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“In conversations with local businesses, it is clear that clarity is required as to why a 60% reduction is required when we know that a far smaller reduction can be hugely detrimental. This is especially the case when one considers that the festive period can account to around 25% of annual turnover."
A Welsh Government spokesperson said: “Our £120m package of emergency financial support covers impacted businesses for the period from 13 December 2021 to 14 February 2022.
“Businesses eligible for non-domestic rates-based payments need to register with their local authority from 13 January, and will start receiving payments shortly afterwards. Systems are being established as quickly as possible to enable this.
“The application window for the Economic Resilience Fund will open during the week starting 17 January with payments reaching businesses within days.
“The Cabinet is reviewing the situation on a weekly basis and will continue to consider whether additional emergency business support funding is needed.”
The 60% criteria is not part of the rates linked grants.