Owner Billy Bowie confirmed the club would be applying for the financial support as he revealed how the impact of the Covid-19 pandemic has led to directors piping money into the club to address cash flow problems and pay the bills.
Now the Ayrshire outfit are to make use of Holyrood's emergency sports fund.
Bowie told The Sun: "I'm sad to say that we're forecasting a seven-figure deficit.
"We've agreed to seek the government loan for £1m which, to be honest, goes against the grain with myself as I don't want to see the club going back into bank debt.
"The directors have been creating funds to pay the bills and everybody has been paid. Players' wages are being paid on time, but going forward we have identified that there is going to be a cash flow shortage.
"Between myself and other directors we are looking at trying to get funds to keep the club going. We will keep the club going until the end of the season."
However, despite Bowie's stark financial prediction the club has put aside a sum of money to help manager Alex Dyer seek a replacement striker for Eamonn Brophy, who joined St Mirren earlier this month.
Bowie added: "We have approved a sum to Alex for an additional player and hopefully that will be enough to bring in the player we need."