EVESHAM town councillors are to sign up to the Market Towns Initiative, which should net them £300,000 over three years.
Earlier this year the town was singled out as a priority area, attracting support from Advantage West Midlands, the Government's regional development agency, and the Countryside Agency.
Town clerk Frank Green explained at a town council meeting that the grants would come in the form of matched funding for specific projects.
The criteria would encompass schemes aimed to strengthen communities, help disadvantaged groups and create conditions for economic diversification and job creation.
In order to access the funding for the first year, an implementation plan and a comprehensive assessment of need had to be drawn up quickly, councillors were told.
They agreed with Wychavon District Council that two projects be put forward, which were already in the pipeline. They are an extension to Prince Henry's Arts Centre and lighting for the Workman Gardens.
Mr Green also put forward a third suggestion - funds for the restoration of Evesham Bell Tower's Carillon, which was accepted.
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