My site already appears in Google News as news provider, also, recent news appears without problems. But my site doesn't appear in Local News section, so people in my city won't be able to see my site's articles.

Three weeks ago, we faced a Google penalty, and fixed it adding structured data, my site doesn't longer have manual actions.

Could this be the root of the problem? Do I only need to wait? Or is there something I could improve to make my site appear in Local News?

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