The projects receiving funding are The Rockfield Centre, Oban Town Centre interpretation signs, and the first phase of the Tobermory Harbour and public realm enhancements.
Councillors have asked officers to investigate the financial viability of the project.
Health minister wants a response back from the focus group by mid July.
Saving historic Kilbride will cost about £300,000 and its friends need your support
This year’s event will be launched on April 8 at Oban’s Regent Hotel
The festival will take place from May 3 to May 5 in venues around Oban.