The fund will be for SMBs aiming to develop new software and applications across Healthcare, government services, E-learning, mobile, B2B, interactive entertainment and Cross platform TV.
This national business fund is the first area of the £5m award from the Government's regional growth fund to Creative England.
"By launching this programme I hope we can stimulate the development of some really interesting content and applications and support projects that otherwise would have struggled to get off the ground," said Creative England's director of business development, Jim Farmery.
The business development fund will be open to SMBs outside of London with priority to companies in the North, South West and West Midlands. These areas support the Regional Growth Fund goal to give more support to areas that have been overly dependent on public sector employment.
"Small businesses are the lifeblood of the economy and we want to encourage more people to discover their entrepreneurial spirit and exploit new opportunities," says Enterprise Minister Mark Prisk.
"This scheme, which has benefited from the Regional Growth Fund, is the right kind of support to help creative and digital businesses get off the ground and develop new and exciting content."
The funding will be available by interest free loans between £50,000 and £100,000, will be matched 50/50 with the business sharing the costs.
"Whether it's creating jobs or boosting manufacturing capability, the regional growth fund shows the difference that Government and the private sector can make when working together," says Prisk. "It is real projects like these which will unlock private sector investment to boost local economic growth and rebalance the economy."