The Growng Places Fund will help projects halted due to problems with road access, contaminated land and flood risks.
The money will be made available through local enterprise partnerships from the end of January and will be repaid once developments are built and sold.
Chief Secretary to the Treasury Danny Alexander said: “The half a billion pound Growing Places fund will kick start local developments across the country.
“This is a flexible fix-it fund that will make a real difference on the ground, improving the lives of local residents and boosting the local economy.
“From building strategic link roads to reducing congestion, the investment will set businesses free and create jobs.”
Ministers have also published indicative allocations of the £500m Growing Places Fund to each of the 38 local enterprise partnerships, including:
- £12.9million for the Liverpool City Region
- £23.9million for the Leeds City Region
- £17.4million for the Local Enterprise Partnership covering Derby, Derbyshire, Nottingham and Nottinghamshire
- £14.9million for Birmingham and Solihull;
- Nearly £40million for London; and
- £14.2 million for the Heart of the South West Local Enterprise Partnership