The Clapham Grand was established in 1900, but has been closed since March.
The money is part of a £1.57bn fund that's been made available to grassroots venues across England.
Manager of the Clapham Grand, Ally Wolf, told Radio Jackie these places are "the first entry point for customers to experience [the live arts scene] and they are the building blocks of a much bigger industry higher up the food chain and they're an integral part of that. If they fall away, everything collapses."