Social enterprises, not-for-profit organisations and businesses are encouraged to apply for a share of $200,000 to fund programs that benefit the community.
Lord Mayor Sally Capp said the 2021 Social Enterprise City Impact Program will support creative solutions to local issues.
"Melbourne is Australia's biggest incubator of social enterprises, which respond swiftly to our social and environmental issues while leveraging the diversity and ingenuity of our people," the Lord Mayor said.
"Social enterprises also contribute $5.2 billion to the Victorian economy each year, so we want to give them an added boost to deliver great outcomes for the community.
"If your organisation has an innovative idea to deliver positive social and environmental impacts for our city, I encourage you to apply."
City Activation portfolio lead Councillor Roshena Campbell said the program offered opportunities to recipients beyond funding.
"To give these enterprises a kick start, we will provide more than funding," Cr Campbell said.
"This includes support with promotions, temporary spaces for pop-ups and opportunities to pitch at Melbourne Knowledge Week."
Environment portfolio lead Councillor Rohan Leppert said this year's program includes $100,000 for initiatives that promote a circular economy.
"This funding round has an increased focus on supporting projects that minimise waste and creatively extend the life cycle of materials," Cr Leppert said.
"This could include restoring or converting clothing, commercial waste or even bicycles that would otherwise go to landfill."
One organisation advocating for a circular economy is STEM Sisters, which previously received a Council grant to establish Dress to Impress. The initiative connects migrant women in the science, technology, engineering and mathematic industries with second-hand, high-quality professional attire.
"Migrant women and female international students face many barriers and discrimination when it comes to entering the STEM workforce," STEM Sisters founder, Ruwangi Fernando said.
"Our City of Melbourne grant enabled us to help these women overcome prejudice, feel confident and thrive in STEM, all while reducing the fashion industry's impact on our environment."
Applicants must be located in the City of Melbourne or deliver services within the municipality.
