Warrington Council has secured a £1.7m European Regional Development Fund grant towards the development of a 50,000 sq ft business incubator office on the former Dallam Centre site, in the heart of the council's £190m Stadium Quarter.
Alongside the ERDF funding, the council is also investing £6.7m from its capital programme to enable the project to start on site.
The incubator office was designed by Liverpool-based Falconer Chester Hall Architects. When the facility completes this summer it is expected to house up to 100 small businesses.
The Stadium Quarter project was announced by Warrington Council in March 2013. Much of the development is a joint venture between developer Iliad Group and the council. The masterplan for the area includes residential, retail and leisure.
The scheme will connect the bus interchange with the Warrington Wolves' Halliwell Jones Stadium.
The council also announced in January that a £10m University Technical College would also be funded and built on the Stadium Quarter site.
Cllr Terry O'Neill, leader of Warrington Council, said: "Warrington is recognised as the number one location outside of London for business start-up companies and this new facility is being built in response to demand. The incubator will provide a first class base in which new businesses can develop and grow."