Northern Ireland and the Border counties of the Republic are to receive more than £7 million in the latest round of awards under the EU's Special Support Programme for Peace and Reconciliation.
The new allocation was announced in Belfast yesterday by the European Commission Vice President, Sir Leon Brittan.
The money will go towards creating employment and promoting exports from small and medium sized businesses. The largest single amount, £2.66 million, will go to the Local Enterprise Development Unit's community business programme.
Welcoming the allocation, the Northern Ireland Economy Minister, Baroness Denton, said that promoting economic development was vital to creating the jobs that would bring prosperity and stability.
Sir Leon said the projects placed particular emphasis on employment and productive investment, "two areas which the Commission stresses in its Structural Funds policy."