"Supporting small businesses has been a project priority for some time and additional hardship assistance on top of the initiatives we have in place already should further help those who may qualify," he said.
The hardship fund budget will come from existing project costs but there is extensive work to be done before the fund can be implemented, Sweeney said.
He said the money would only be able to small businesses that could prove financial hardship caused by the project's delays and would not compensate for any inconvenience caused by construction.
Shakespeare Tavern owner Sunny Kaushal, who is the spokesman for the lower Albert St businesses, said it was a positive development in the campaign, but he is waiting for more details about how much is available and what the criteria will be.
While the CRL project would benefit all of Auckland, the inner city businesses were paying the price, he said.
"These developments are causing so much stress, it has taken a toll on [business owners'] personal health, their family life and the business as well.
"All these businesses, to my knowledge, were doing quite well before this project started. The last two years have taken a huge toll; the revenue in the street has gone down 60 per cent, the whole street looks like a war zone."
He said some of the business owners don't know how they were going to keep their doors open each day. "We have been crying out for help for two years and the situation is so grave that some of the businesses have already closed and others are on the brink of collapse."
Auckland's inner city business association Heart of the City was delighted "that human decency has prevailed".
"This is an unprecedented situation and with the delays and severe impacts caused, it is unfair for small businesses to bear the brunt of a large-scale, long-term project in this way," a spokeswoman said.
"We looked at what happens in other countries and advocated for a hardship fund that is fair and transparent with clear criteria."
Auckland Central MP, National's Nikki Kaye said the hardship fund was a positive step, but the crucial detail around the amount on offer and eligibility criteria remains to be seen.
She acknowledged the advocacy efforts of Kaushal and Heart of the City chief executive Viv Beck.
"We've had meetings, protests, letters, its been a really long road to get here and they've really been incredibly dedicated," she said.
"I also want to acknowledge what this means for businesses in that it's just been heartbreaking seeing the destruction and the stress on them and that this will be a pretty positive day for them."
She said she hoped central and local government bodies could learn from this project for future major infrastructure projects.
In recent interviews, both Transport Minister Phil Twyford and Prime Minister Jacinda Ardern have cited advice they have received from City Rail Link Ltd (CRLL) about what the Government is doing to help the struggling businesses.
In April, Goff indicated that the council would neither front up for compensation, or a rates holiday, saying it was not in line with current or past practice.
Twyford said CRLL was in discussions with a "handful" of businesses, but he had been unable to specify how many.
Speaking to Newstalk ZB earlier this month, Twyford said the Government was working "hand-in-hand" with affected businesses.
He told Newstalk yesterday that his advice from CRL was that it had been talking to affected businesses about the issue.
