The investment came from the Business Catalyst Fund, which is financed by the Regional Growth Fund (RGF).
Bodmin-based Proper Cornish will use it to part-fund a £3.75M expansion project that will bring all of its six sites together under one roof.
This will help the business to run more efficiently, create 50 new jobs and safeguard a further 183 posts.
An empty unit on Bodmin’s Walker Lines Industrial estate will now be converted into a modern bakery and head office.
Rebalance the economy
The government set up the RGF to invest in companies that can create jobs and attract match funding from the private sector. For every £1 of government money awarded, the private sector invests £6.
Launching the fourth round of the RGF last week (January 17), deputy prime minister Nick Clegg called for businesses to bid for a share of the £350M fund.
The Department for Business Innovation & Skills said in a statement that the fund had already helped 180 projects to get started.
Clegg said: “The RGF is already proving a shrewd investment by providing a welcome boost to jobs and growth across the country, with thousands of jobs created, businesses expanding into new markets and manufacturing new products. With this next round of funding, I would urge England’s budding businesses to produce top quality bids to access the money that can help them grow.
‘Boosting jobs and growth’
“There’ll be stiff competition, and we can only invest in those projects that will lead to sustainable jobs and the best value for money. Boosting jobs and growth is our number one priority for Britain right now.”
Business secretary Vince Cable said: “It’s not just about big industry and household names. To date, we have supported over a thousand small and medium-sized enterprises through RGF programmes, which are giving small businesses the impetus to expand, employ more staff or start exporting. This is the government’s commitment to growth in action to encourage investment and lead to a more balanced economy.”
Clegg said projects from the first three rounds had pledged to create or safeguard a total of 500,000 jobs, along with an investment of £13bn from the private sector.