The 23-strong group, which has its headquarters in Birmingham, will open its 24th site at the city's newest retail and leisure destination in September.
The 200-cover restaurant will be the company's largest so far and is expected to create 19 new jobs.
The funding will also be used to refurbish Handmade Burger Company's Brindleyplace and Touchwood Shopping Centre outlets. The sites, in Birmingham and Solihull were the company's first - opening in 2006 and 2007 respectively.
Clive Broadhurst, Investment Director at Finance Birmingham, said: "From a single family-run restaurant in Birmingham in 2006, the company has grown to a national brand with an incredibly loyal following.
“This funding deal will allow the business to realise ambitions to open in the UK’s newest premiere leisure destination at Grand Central in Birmingham. It’s a homecoming of sorts, but one that marks the beginning of a new period of growth for a company on the up.”
The investment from Finance Birmingham’s £9 million Regional Growth Fund will allow the business to build on current success and secure the first stage of wider expansion plans.
Handmade Burger Company co-owner Chris Sargeant said: "As a business, our ambitions were first brought to life in Birmingham so it is fitting that our growth continues to be fuelled by the city that has long supported us.
“Finance Birmingham took the time to understand our business, growth plans and the speed at which our industry moves. They are an agile and highly experienced team that have allowed us to make huge strides in our nationwide expansion plans in a short space of time, starting in the Midlands with a prime site in the city’s Grand Central Station.”