An audit of the state government's $26.6 small business grants program has shown one-third of recipients were involved in the hospitality industry.
The government launched the program at the start of the COVID crisis in Tasmania in an attempt to save businesses from going under in the short term.
The program awarded $15,000 grants to businesses and later $4000 grants.
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It was criticised for its method of distribution and later the government was criticised for refusing to publicly produce a list of recipients.
Auditor-General Rod Whitehead released his audit of the grants program on Tuesday.
He said the application process was appropriately designed and risks managed within the context of a program that needed to be quickly developed.
"The overall objective of getting hardship grants to small businesses quickly was achieved," Mr Whitehead said.
'Due to the need for the prompt distribution of grant funds the program could not be a truly competitive one but there was no bias of grants paid in terms of geographical location or business type."
The report stated there were 2928 grant payments made from 3994 applications received.
Thirty-six per cent of grants went to hospitality businesses, 18 per cent went to retailers and wholesales, and 12 per cent went to construction, transport and manufacturing businesses.
The likelihood a grant applicant would receive funding was 84 per cent on average.
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