Finance Yorkshire has secured £10m from Round 6 of the Regional Growth Fund to invest in businesses across Yorkshire and the Humber.
Some 56 nationwide awards were announced this week, although none went to South Yorkshire companies.
But the money will see Finance Yorkshire invest in local companies.
Chief executive Alex McWhirter said: “This is excellent news and a tremendous boost for Yorkshire and the Humber. The grant will allow Finance Yorkshire to continue its vital investment work in providing gap finance to companies with viable and achievable business plans, allowing them to grow and expand and create jobs in the region.”
It follows the investment of £90m into 694 companies in the region, creating and safeguarding and estimated 9,240 jobs and increasing overall turnover by £265m.
McWhirter added: “Our investments have already given businesses a timely boost which has led to substantial private sector investment and more employment opportunities being created. The RGF grant will further increase that effect and with growth firmly back on the business agenda, the economic impact of the new investment available should not be underestimated.”
James Newman, Chairman of Finance Yorkshire and Chairman of the Sheffield City Region Local Enterprise Partnership said: “Finance Yorkshire’s investments to date have had a huge impact on the regional economy, enabling businesses to grow, create jobs and wealth.
“The RGF grant provides the opportunity for Finance Yorkshire to build on its track record and further invest in companies right across the region, supporting them in their ambitions.”