A £400,000 loan will see plans to build a fast food restaurant and petrol station at Fiveways roundabout started.
New Anglia Local Enterprise Partnership (LEP) has given the loan to allow building work to begin.
Hugh French, commercial surveyor at developers Pigeon, said: “The LEP funding will enable us to commence the construction of what will be a very exciting development on the Barton Mills roundabout.
“There is a lack of finance available for commercial developments at present, but we are delighted that the LEP has been able to assist us in moving our scheme forward.”
Work is expected to start on the site to the right of the roundabout’s Bury Road exit, later this year.
The existing buildings will be demolished and a McDonald’s restaurant and petrol station will be built, creating 50 jobs.
The car wash business currently based at the site will continue to operate.
The LEP is giving several loans to commercial development projects stalled due to a lack of finance.
Andy Wood, Chairman of New Anglia LEP, said: “We are keen to help developers and investors realise the potential of sites where businesses can grow and flourish.
“That’s why we’re delighted to be launching our Small Loans Fund which will help leverage funding and kick start sites such as the development at Barton Mills.”
Councillor David Bowman, Forest Heath District Council’s portfolio holder for economic development and tourism, said the grant was good news for the local area.
He said: “It’s very much an area I’m looking to try and develop with any luck we will look for a retail village or that kind of thing.
“The dualling of the A11 will open all sorts of options.”