The City of Sydney wants to offer businesses grants of up to $30,000 as part of its plans to bring the city’s central business district laneway and “forgotten spaces” back to life.

A new report that went to the Council's Cultural Community Services Committee yesterday recommends offering the business development grants to encourage the creation of small retail, service and hospitality businesses.

Lord Mayor Clover Moore MP that enlivening the city’s laneways was part of the Sustainable Sydney 2030 vision to “create a more vibrant city centre."

The strategy also includes a new temporary laneway art program By George! from October 3, as part of this year's Art & About festival, with artists transforming four laneways off George Street.

"The City is excited about the potential to reactivate these forgotten pockets throughout Sydney and By George! is an exciting program building on the City's successful Live Lanes program in 2007, Moore said.

One-off cash grants could be available to businesses to build diverse and innovative ideas for small CBD spaces which can activate blank, vacant or empty areas.

Businesses will need to match the City's cash grant dollar-for-dollar and meet the selection criteria. The business can then use the grant to help fund capital works such as fit out, new equipment or other costs associated with setting up the business.

A business development officer will also advise potential business operators, property owners and other local stakeholders on creating successful businesses in laneways and how to navigate through the various approvals.

"These measures will help innovative small businesses get started, work with property owners to identify potential spaces and draw in residents and visitors through inspiring creative programs like By George!," said Moore.