The Mid Yorkshire Chamber of Commerce has welcomed the £20m funding available through the Leeds City Region Business Growth Programme.
It will help boost the economy through support for smaller companies in a programme developed by the Local Enterprise Partnership.
Steven Leigh, chamber head of policy, said access to grant funding will be opened to many smaller business for the first time.
“There is no doubt that the BGP will stimulate growth and create employment in our region,” said Mr Leigh.
“Whist we enthusiastically support this initiative, and encourage businesses to avail themselves of the offer, it remains essential that affordable finance for business should be unblocked.
“The Government announced in the Autumn Statement the creation of a Business Bank, and unfortunately we have not had any further information since. The ‘Funding for Lending’ scheme must also be given attention to ensure it works. The solution isn’t to produce a number of schemes but to deliver one quality policy which will address the present problems of making affordable funding available for business.“