Three million pounds has been awarded to The Marlowe Theatre in Canterbury, as part of the Government's £1.57 billion Culture Recovery Fund.It is one of eight organisations to receive the financial support as part of a second round of grants.
The theatre, which is the largest in Kent, usually attracts audiences of 400,000 annually and generates £42 million to the economy.
Its Chief Executive says the money will take away the threat of permanent closure.
The Marlowe Theatre receives no revenue funding and operates as a self-funding charity.
It is reliant on the Box Office for 99% of its income.
Culture Secretary, Oliver Dowden said: "These grants will help the places that have shaped our skylines for hundreds of years and that continue to define culture in our towns and cities."
Sir Nicholas Serota, Chair of Arts Council England said: "Culture makes a huge and increasing contribution to our national life, bringing communities together, fuelling our creative industries, and representing our country on the world stage. These grants add to those announced last month, and will put these organisations in a better position to bounce back and help their communities recover from this crisis."
The Marlowe Theatre temporarily closed to audiences, due to the coronavirus outbreak, on March 17 2020.
It will be presenting a socially distanced pantomime from December 11 to January 3 2021.