Helston has been told it needs to set out "clear priorities" after missing out on millions of pounds worth of grants once again.
On Friday it was revealed that four areas of Cornwall would be receiving up to £25 million each, as part of the government's latest bid to kickstart local economies - but Helston was not among them.
Instead it will be Camborne, Penzance, Truro and St Ives getting a share of £3.6 billion from the new Towns Fund, designed to boost jobs and economic growth.
The government said places with "proud industrial and economic heritage like Penzance and St Ives" were chosen as they had not benefitted from economic growth in the same way as more prosperous areas.
West Cornwall MP Derek Thomas, whose constituency includes Penzance and St Ives, welcomed the news and also vowed to keep fighting for Helston.
Mr Thomas, who has been working with different groups and stakeholders in Helston, said: “I am hopeful that more government investment can be secured for Helston once some clear priorities have been established.”
It is a further blow for the town, after it already missed out on being selected for possible funding from the Future High Streets Fund.
Helston Community Interest Company (CIC) had put in a bid to Cornwall Council for its backing on an application to the fund, with the aim of potentially taking on the former JobCentre Plus and Original Factory Shop buildings in Coinagehall Street, or even the abandoned Co-op site in the Trengrouse Way car park.
It would have been the next step in an idea first raised at a public meeting back in November, to take a currently empty building in the town and convert it into short-term lease units for start-up shops, almost in an arcade-style outlet, to provide a stepping stone for businesses working from home but not ready to take on a whole shop.
At the time a CIC spokesperson told the Packet: "All too often when these funds or grants come up, Helston never seems to apply for anything. Of all the towns in Cornwall, Helston is probably in more need than anybody.
"We should be applying for them and that's what we're looking to push forward."
However, Cornwall Council chose to back Penzance, Camborne, Newquay and St Austell's bids.
Penzance has since gone on to reach the second stage of the fund and has received £150,000 to put together a workable scheme, in the hope of receiving up to £25 million of additional funds.
Mr Thomas said the advantage that St Ives and Penzance had over Helston was that they were Business Improvement Districts (BID) and had completed neighbourhood plans that set out a direction of the future.
He added: "The work of the CIC to develop innovative ideas, and the tremendous effort regarding the sustainable Helston/climate crisis response with the support of the town council, is good work that can lead to opportunities to secure funding.
"I need to continue the work I have been doing to argue for cash for smaller towns.
"The advantage for St Ives is the fact that the town has a BID and has completed a neighbourhood plan. The existence of these do enable easier access to priorities and identified challenges.
"Penzance also has a BID and an advanced neighbourhood plan so, likewise, ample evidence exists setting out the challenges and priorities.
"I need to work harder to exploit every opportunity available to Helston with those on the ground who are already doing good work to promote the town’s opportunities. And I will!"
Communities Secretary Robert Jenrick said the aim of the Towns Fund to ensure "prosperity and opportunities are available to everyone in this country, not just those in London or our biggest cities."
He added that this money came on top of Cornwall receiving funds in the latest round of Growth Deal funding, worth £18.03m, which is being used on a Creative Tech Hub in Truro and the upgrade of Goonhilly Earth Station to assist the development of UK space technology.
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