The South Kesteven town will join 50 successful areas already shortlisted to develop plans to reinvent their high streets. The funding could be used to improve transport and access into the town, convert empty retail units into new homes and workplaces, and invest in other vital infrastructure.
The bid was a collaboration between InvestSK - who led the production - and South Kesteven District Council, with the submission being made in March this year.
Steve Bowyer, InvestSK's CEO, said: "Grantham has been identified as a prime town for major new growth - in housing, retail and commercial development - but it is absolutely vital that we also maximise the potential of, and opportunities for, its town centre. The tremendous support that our bid received from businesses and other organisations demonstrates the genuine passion that exists for the future success of the town.
"The bid we created with the Council has the heart of Grantham at its very core. It's designed around our shared vision to create a 'living town', and will generate a better experience for all: increasing the town's vibrancy, through culture, leisure, retail and events; filling vacant units and increasing town centre living; and improving movement around the town by investing in our streets, spaces and infrastructure. Fundamentally it will boost our economy and provide a better quality of life."
Councillor Helen Goral, Cabinet Member for Growth at South Kesteven District Council, added: "Being shortlisted in this latest round of applications is very welcome news indeed. Grantham is a great town, and this funding will be vital in helping us deliver our vision for the Grantham of the future. We look forward to developing our thinking further and progressing to the next stage of the process where we will develop a full business case for consideration."
Communities Secretary Rt Hon Robert Jenrick MP said: "High streets have a crucial role to play as we work to grow the economy of all parts of the country.
"Our £1bn Future High Streets Fund is key to delivering this, giving local leaders the tools to help transform their high streets and town centres as consumer habits change, by investing in housing, workplaces, infrastructure and culture.
"I am greatly excited by Grantham's 'The Living Town' plans, which aim to allow retailers, cultural agents and commercial investors to prosper. By investing in accommodation and supporting local business Grantham has the potential to provide an exciting new town centre offer for residents and visitors.
"This Government is going to level-up our regional economies and I am proud to be driving this agenda forward."