Silverstone has won the financial backing of a local authority in its bid to raise £30 million for redevelopments that include a new pit and paddock complex.
The work, which will help modernise the circuit in time for the 2010 Formula One Grand Prix, will be partly paid for with a £10 million loan from Northamptonshire County Council.
The authority’s ruling cabinet has cleared the way for the idea after changes to its investment strategy which have seen less money invested with banks and more made available to fund projects of local significance.
It is prepared to embark on the loan, which has been agreed in principle, because of the importance of the circuit and of Northamptonshire’s motorsport engineering industry to the local, regional and national economy.
It is also hoped that the project will generate new jobs as well as safeguarding existing ones, particularly in the construction industry.
Councillors will meet again in the coming months to finalise the loan.