The B Street Theatre has won more than $8 million in state aid for expansion into midtown.
A loan application was approved today by the California Infrastructure and Economic Development Bank.
If the company gets another $5 million in tax credits from the federal government there could be a groundbreaking this fall near Sutter Medical Center.
The 45,000 square foot complex would actually house to theaters.
B Street has been trying to move out of its current, cramped location for a decade.