Perth and Kinross Council is to provide an immediate £250,000 to support residents and businesses impacted by the fatal fire in Perth city centre on 14 June.
One person died in the fire at 41 Scott Street in the early hours of Saturday morning. The building was destroyed in the fire.
Demolition work is already underway. Several residential and businesses properties remain closed for safety reasons because of their proximity to the damaged building.
Fifty-five households have had to be rehoused because of the fire.
Perth and Kinross Council's Finance and Resources Committee approved releasing £250,000 from the Communities Earmarked Reserve to support residents and businesses when it met on Wednesday 25 June.
It follows a request from Perth and Kinross Council last week for proposals on support to be brought to this week's meeting of the Finance and Resources Committee.
Councillor leader Councillor Grant Laing, vice convenor of the Finance and Resources Committee, said: "It is still early days, and it is likely that there will be a call for other funding, but it is important that the Council stands with our citizens and communities in their hour of need.
"So today I am proposing the immediate allocation of £250,000 from the Communities earmarked Reserve to support those very communities.
"Specifically, as well as augmenting the Scottish Welfare Fund and Financial Insecurity Fund, this investment will assist residents affected by rent shortfalls who are not eligible for other support.
"For businesses directly impacted by the demolition and closures, funding to support their immediate recovery costs as well as future expenses linked to reopening or relocation.
"Looking ahead, we may also look at how we encourage footfall back into the areas affected."
Finance and Resources Convenor Councillor Stewart Donaldson added: "There will be additional funding but it is vital we provide immediate support to all those impacted by the fire.
"This was a devastating event and I would like to thank everyone who has provided support to those affected. The response from communities across Perth and Kinross has been inspiring."
Perth and Kinross Council hosted a drop-in session for those affected by the fire on Tuesday 24 June which offered advice on a range of issues. Partner agencies providing support also attended.
A second session will take place on Friday. Supported by Pete Wishart MP and John Swinney MSP, it will have a focus on insurance issues. The event will be attended by representatives of Perth-based insurance firm Aviva and the Association of British Insurers.
It takes place at Perth and Kinross Council's 2 High Street offices from 11am to 2pm on Friday 27 June.
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