More than 300 jobs are to be created through a £5 million hotel and affordable homes development in Brighton's city centre.
A Government grant will be used to build the complex on derelict land behind the city's main railway station.
Coast To Capital has £23 million of Government funding and expects to announce further loans to public and private sector organisations.
Its chief executive, Ron Crank, said: "Our aim is to remove blockages that are preventing development and private sector employment. This is one of Coast To Capital's major strategies."
More top news
Hampshire police arrest seven more men in investigation into an alleged conspiracy to commit serious sexual offences on the Isle of Wight.
The Government scheme would benefit those aged under 40 but will only run for five years.
Becoming windy with cloud and showers this afternoon. Heavy rain on the way later