The town of Aquinnah has been named a finalist for a highly selective arts funding program that could further bolster the new Aquinnah Circle Cultural District.

ArtPlace America, a national coalition of foundations, federal agencies and financial institutions, announced last week that it will consider Aquinnah Circle and 79 other communities across the country for its 2016 National Creative Placemaking Fund.

The coalition reviewed a total of 1,361 applications for this year’s awards.

“It’s an incredible accomplishment that we even got to the finalist stage,” town administrator Adam Wilson said. Town officials will host representatives from ArtPlace for a tour of the Circle on June 23.

“Currently, the Aquinnah Circle is the primary destination for residents and tourists alike, but without any facilities, the area is unable to retain visitors,” ArtPlace said in a catalog of nominees. The potential funding would pay for artists to design streetscapes to honor local history and create new opportunities for tourism.

The total funding amount is unknown, but in the past, projects in Massachusetts have received between $50,000 and $450,000. The fund has invested a total of $67 million in 152 communities across the country since 2011.

Aquinnah Circle has been the subject of intense planning since last year when the Gay Head Light was moved back from an eroding cliff. Students at the Conway School of Landscape Design issued a lengthy report on the Circle in May, following two well-attended public visioning sessions. The Massachusetts Cultural Council named the area including the Gay Head Cliffs a cultural district in January.

Other commonwealth communities under consideration for the ArtPlace funding include Adams, Boston, Cambridge, Greenfield, Mattapan and Worcester.

Meanwhile, public works director Jay Smalley said he plans to spruce up the Circle with flowers and new picnic tables, along with a simple shelter for visitors. He envisioned up to eight new metal picnic tables at the shops, and relocating the old wooden tables to the Circle.

“It’s all doable,” he said, although the exact source of funding was still in question. He also discussed the possibility of regrading an area behind the shops, which may involve building a retaining wall, and using that area for seating.

Selectman Juli Vanderhoop, who recently opened a satellite location of her Orange Peel Bakery at the shops, welcomed Mr. Smalley’s plan for the Circle, although the projects would still require approval from the town planning board.

Other changes at the Circle this summer may include live music and other performances. Local musician Joan Flahive appeared before the selectmen to ask permission to play guitar and sing, using a small amplifier.

“We are trying to figure it all out,” said Ms. Vanderhoop, who welcomed the idea. “We just don’t want people up there stepping on other people’s toes.” The selectmen unanimously agreed to let Ms. Flahive perform any three days a week in the Circle.

Planning board chairman Peter Temple said he didn’t believe the town had any restrictions on public performances, although there are specific rules related to the lighthouse, which abuts a residential area. He noted that Arts Martha’s Vineyard, which helped obtain the cultural district designation this year, has advocated for more public art on the Island.

“You are a pioneer, but others will follow,” Mr. Temple told Ms. Flahive, noting that the town would eventually need to develop some guidelines for performers.