The JEREMIE fund is backed by the North East LEP (NELEP) and its partners and aims to provide vital funding to the region’s SMEs.
The extra £17m will be pumped into over 100 of the region's most ambitious small businesses during the next nine months.
Since its launch, FBNE has provided vital investment to 850 companies - safeguarding or creating more than 6,000 jobs and securing a further £185m of investment into the region from business angels and venture investors across the UK and globally.
Andrew Hodgson, North East LEP chair, said: "The JEREMIE programme offers an opportunity for the region's entrepreneurs to access vital finance to start up or grow their businesses.
“This closely aligns with the goal in our strategic economic plan to create business growth and we are delighted to support this extension."
The North East Local Enterprise Partnership (NELEP) has backed the fund with a further £4.5m investment which has been matched by the European Investment Bank, with a further loan of £8.5m, on top of the £60m+ committed to the programme so far.