The Track 2 Train scheme aims to transform a disused building at Newtongrange railway station into a hub with a bistro, training kitchen, learning centre and business space.
The project is one of 29 community projects across Scotland to secure a Regeneration Capital Grant.
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The total development cost is £785,000. As well as the £360,000 grant, a further £260,000 will come from Borders Railway Blueprint partnership fund, while £80,000 has also come from the Railway Heritage Trust. Other funding sources are also being explored.
A council spokesman said: "The funding announcement is a major investment in this exciting partnership project.
"We're working with Track 2 Train, a charity established by and closely associated with Apex Scotland, to redevelop the building, which is currently owned by Network Rail.
"The hub will be a great community space and, through Apex Scotland, which works with people in the criminal justice system, it will also offer excellent training opportunities for ex-offenders."
(LM/CD)
