Restaurants, gyms, museums and other businesses that have been open at 25% capacity since December can operate at 40% capacity starting Monday morning.
Gov. Charlie Baker is loosening restrictions he put in place after the surge in coronavirus cases prompted by the holidays.
"We're making progress in this battle against COVID, and everyone's hard work and preparation is now making it possible for us to continue to step back to what we might call a new normal," Baker said at his daily coronavirus press briefing from the State House on Thursday.
Employees will not count towards the capacity caps.
Baker had moved the state back to step one of the third phase of his reopening plan Dec. 13, forcing restaurants, stores and other businesses to cap capacity at 25%.
Baker said the decision is "based on the fact that we have seen ... a 50% reduction in our seven-day average case count since its peak in early January and a 35% reduction in COVID hospitalizations."
The limits on gathering sizes, which were also rolled back in December, will remain in place, according to Baker. Outdoor gatherings will remain restricted to 25 people and indoor gatherings to 10 people.
The governor also announced another round of small business grants amounting to nearly $174 million for over 4,000 businesses hit hard by the pandemic.
