A $10 MILLION fund to support new and existing businesses in bushfire-ravaged areas has provided a much-needed stimulus to rebuild the devastated town of Marysville, locals say.

The Victorian government today announced that grants of between $50,000 and $4 million were available for small and large businesses in bushfire-affected areas.

Grants would also be available to existing businesses to expand, a move described by businesswoman Pam Phillips as "a godsend".

"It's the sort of help that those of us who are still here have really been waiting for," said Ms Phillips, who runs the Marysville Tavern at Crossways with partner Greg Cherry.

"It would be a godsend."

Graeme Brown, the president of the Marysville and Triangle Development Group, said the initiative would hopefully break a "logjam" that had stalled the Marysville economy.

"It will build confidence to be able to either invest in new business or to get some of the previous operators to come back," Mr Brown said.

Mr Brown, who was at the government's announcement in Marysville today, said he had spoken to at least six people who were keen to apply for the grants.

"We see it as a very positive move," he said.

Most of Marysville was razed by the February 7 bushfires last year and the town's rebuilding process has been slow, frustrating some locals.

A new shopping centre was opened in the former Marysville Motor Museum last December and now has 10 businesses.

Reconstruction has started at the local primary school, which is expected to open for the second term of the school year in April.

Premier John Brumby said the fund was the next step in the recovery process.

"It is about encouraging large-scale and small-scale investment in areas like tourism, agriculture, food, forestry and energy to create new jobs and grow economies," Mr Brumby said in a statement.

Parliamentary Secretary for Victorian Bushfire Reconstruction, Bill Shorten, said the grants were available for capital works projects of any size which boosted the economy.

"The grants are available for capital works such as buildings for new industries, as well as tourism facilities which help drive economic recovery," he said.

The fund is part of a $193 million pool for bushfire recovery announced last year.

Applications for the fund close on June 30.