Horsham District Council (HDC) is set to consider a bridging loan at a meeting on Wednesday, April 29, which would help to improve Billingshurst Surgery.
Patients could benefit from improved facilities which will increase the number of people who can use the surgery.
The council approved an application last year which will see 475 homes built on the east of the village.
The bridging loan of £243,000 would be made available in advance of a payment by the developers.
Councillors are being asked to support this loan to bring froward the work to improve the surgery.
The project, involving internal alterations and refurbishment of the surgery, will increase patient capacity at a time when the village is growing and is estimated to cost around £650,000.
To pay for the improvements a balance of funds is being sought from a commercial development partner and the NHS.
The loan would be made at a market rate of interest and would also be subject to appropriate security.
Tom Crowley, chief executive at HDC, said: “Councillors are being asked to approve this loan to help accelerate the delivery of the improved facilities.
“Whilst the provision of primary care and GP surgeries is not the responsibility of our council, we have powers to assist in this way and have a track record of assisting with the successful delivery of medical centres including Southwater and Steyning.
“In addition, we are continuing to work with the NHS and GPs in Storrington and Horsham to help identify and deliver solutions to support the healthcare needs of those areas.”