Ballymahon is the only town in the Shannonside region set to benefit from a national 9 million euro outdoor dining fund.
Main Street in the South Longford town is set to receive almost €105,000 to develop permanent weather resistant structures to aid outdoor dining.
The multimillion euro Failte Ireland Fund is being split across 38 locations nationwide under the Outdoor Dining Enhancement Scheme.
Stage one of the scheme will see individual hospitality businesses claim up to €4,000 for seating, tables and outdoor accessories, with applications closing at the end of the month.
Any structures constructed in Ballymahon as part of the project will still be subject to Longford County Council planning permission and public consultation.
PRO of the Ballymahon Town Team, Niall Dowler says the new funding will form part of the rejuvenation of the town's hospitality sector.