The City Council in Corning approved a $100,000 commercial loan towards an apartment and office space on Market Street.
The application was rejected previously, for the city to be the third mortgage. Some council members said they rejected it because the city would have to wait in line to receive the funds if the business failed.
In Wednesday nights vote, the city was the second mortgage, which council members approved.
The loan is for the space above the Cugini Italian Market & Cafe on 14-16 West Market Street.