A $3.65 million federal loan guarantee will help finance the rehabilitation of the Massasoit Building, which houses Springfield's historic Paramount Theater.
Congressman Richie Neal said the Paramount, which was built in 1857, is a part of the Pioneer Valley's art history.
“It certainly is a prime address in Western Massachusetts,” Neal said. “It’s proximate to Union Station, and I think with proper investment it could become another entertainment night spot."
The New England Farm Workers Council, which bought the property in 2011, previously proposed a casino on the site.
That project failed, and the group's most recent plan is to remodel the building as a performance space and hotel.
The federal Department of Housing and Urban Development loan guarantee represents a small piece of the project's estimated $41 million price tag.