Wellington Orbit, a not-for-profit organisation, has been included in the Levelling Up Fund bid for Wellington, submitted by Telford & Wrekin Council to the government for consideration.
If successful, the funding for Wellington Orbit will help create a community arts space in the former bank on Station Road.
The bid for the Orbit is over £1.4m, which if successful will build on the success of the cinema and help to provide a more flexible arts space for the benefit of the community in the town.
After years of fundraising and support from the community and local investors, the 63-seat cinema and cafe opened in May 2019.
The planned second phase will double the size of the facilities, transforming the remaining floors into a community arts space including a performing arts studio and exhibition space.
Ray Hughes, a director at Wellington Orbit said: "We are truly thankful for the support we have received from Telford & Wrekin Council, Wellington Town Council and also the local community in helping us on our journey to bring vital arts and culture facilities to the community of Wellington and beyond.
"We are not there yet as the bidding process is competitive, but if we are successful in the bid, the funding will be the cornerstone to the redevelopment of all of Wellington market town and allow us to deliver the facilities the community has been asking for."
Councillor Lee Carter, Telford & Wrekin Council’s Cabinet Member for Neighbourhood Services, Regeneration and the High Street, said: “Wellington Orbit is an organisation which will play a vital role in helping the redevelopment of the market town and have an immediate impact on the community.
“We are pleased to be able to include them in our bid to Government for Levelling Up Funding.”