Dunbar Community Bakery, which opened its doors in 2011, has received a grant of £124,560 from the Scottish Land Fund.
The money will be used to allow the bakery to purchase its premises on the town’s High Street and secure the future of the business.
Jo McNamara, a founding member of Dunbar Community Bakery, was delighted with the funding announcement.
She said: “This award comes at a crucial time for us.
“We’ve survived many ups and downs since we opened 11 years ago but current energy costs are a real challenge.
“Our High Street is really important to the community and this will be a real boost for confidence all round.
“Our members will be especially delighted that we will be able to develop new ideas and make plans to train more bakers and create a new range of products.”
Seven other groups across the country received funding, which totals more than £1.3 million, through the Scottish Land Fund.
Other organisations benefitting included Thurso Community Development Trust, North Arran Community Benevolent Society and Nith Valley Leaf Trust.
Dunbar Community Bakery also provides training opportunities for young people.
Isobel Knox, acting chairwoman of the community bakery, told the Courier that “all small businesses are feeling the pinch” and highlighted the importance of the grant.
She said: “This has been a lifesaver.
“To buy the premises, we were having to pay rent and not just the rental payments but we had common repairs to do for the rest of the people in the block.”
Dunbar Community Bakery provides a range of different baked products, including artisan loaves.
Mrs Knox said: “Obviously, people go to Greggs or Asda but we are kept busy with hot filled rolls as well.
“There are a lot of people working on High Street as well and we are local for them.
“If we had not got this funding, the future of the bakery would have been in some doubt.
“We have got this at the heart of the community.
“Obviously, not everybody chooses to come but a lot of people like the model of a community business.
“What we raise in the community stays in the community.”