Around 800 businesses have so far received the payments.
The grants, made available under a national government scheme, are distributed by the Isle of Wight Council to eligible businesses ratepayers.
So far more than 2,590 business ratepayers have filled in a form to provide their details for direct payment, which can be found at www.iow.gov.uk/covid19_businessadvice.
Council leader Dave Stewart said:
“With many more millions to go out in the coming days and weeks, this lifeline will help our Island businesses at this crucial time.
“We understand that cash-flow is key to the survival of a business in these unprecedented times and I would like to thank the council staff working to get this money to our Island businesses as quickly as possible.
“I would encourage any business that thinks it is eligible for these grants to contact us through our website so that we can arrange to get these funds to you.”
Bob Seely MP has said:
“I urge all small and medium sized businesses on the Island to see if they are eligible. Even if you don’t think you’re entitled, it’s worth checking.
“We need to keep our businesses and our economy going so that when we emerge from lockdown we are in the strongest position we can be to rebuild our economy and get people back into employment as quickly as possible.”