ITV News had learned that Durham Tees Valley Airport has not made the shortlist in the latest round of the Regional Growth Fund.
Owners Peel Holdings had hoped to use the government regeneration money to build a freight operation.
Durham Tees Valley airport have expressed their "acute disappointment" over their lack of funding from the Regional Growth Fund.
The airport were hoping for a £5.9m grant in support of its Southside development.
"I would personally like to thank the local community for their amazing donations of food, toiletries and clothing. "
Owners John and Irene Hays say there is ''light at the end of the tunnel'', after the pandemic forced them to close 650 UK stores.
There has been resistance to calls to dismantle memorials to the explorer.