The money has been given to Omega Warrington Limited and will also pay for infrastructure as the Omega South development takes shape.
It will be repaid over seven years with interest and council bosses say any money they make on the deal will go into front line services.
Clrr Terry O’Neill, council leader, said: “This loan, which will be repaid with interest, will unlock the full potential of Omega South.
“The growth agenda for Warrington is essential to create jobs and wealth for the people of the town and ensure its future prosperity.
“The provision of this loan is an investment in the long term future of the borough.”
The highway will connect Omega South to junction eight of the M62 - run next to the Asda logistics development (which has just started to take shape) and connect to Omega Boulevard which at the moment ends at the Royal Mail depot in Lingley Mere.
Work, which will start in the coming weeks, is expected to finish by early 2015.
The Asda building, which started in October, will cost £100million and also finish in 2015. It is thought to be the biggest single investment ever made by Asda-Walmart and the building will become the most technologically advanced unit of its type in Europe.
Meanwhile consultation started on Friday to revise and update the current planning permission for Omega South.
Public consultations will take place on the following dates and venues: Today, Thursday, from 4pm to 8pm at the Lego Innovation Suite at Great Sankey High School Tomorrow, Friday, from 12pm to 4pm at Kingswood Community Centre, Kingswood Road Monday from 2.30pm to 6.30pm at St Michael’s Parish Hall on Chapel Lane, Burtonwood.
The scheme is for the rest of Omega South - not including Asda - and is split into three areas.
They will feature more manufacturing and logistics (included in the current consultation, housing and commercial and retail developments - such as shops - which will be revealed later this year.
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