A £10m construction grant fund will open this summer.
The regional Revolving Investment Fund will provide finance to support commercial projects in the Leeds City Region area.
Kirklees Cabinet members agreed to contribute £3.3m funding to the scheme, along with seven other authorities, earlier this year.
The overall fund totals £20m but the first phase will be no more than £10m.
Kirklees Cabinet backed the launch of phase one, which will focus on asset-based construction projects, including housing schemes.
Clr Peter McBride, Cabinet member for investment and housing, said: “The council has already committed to £3m investment with this funding as part of the City Deal.
“This will help local businesses to access capital for development and expansion.”
The minimum level of investment for an individual project will be £1m but there’s no maximum level of investment.
Repayments must be within five years.