Purple Line Small Business Grants

The Maryland Department of Transportation Small Business Grant Program is a state-administered initiative designed to provide financial assistance to small businesses impacted by the construction of the Purple Line Light Rail project. The program is administered by the Maryland Department of Transportation in partnership with Purple Line Transit Partners, the private sector entity responsible for construction, operations, and maintenance. Since its launch in 2025, the program has distributed significant funding to businesses located along the Purple Line corridor, reflecting a targeted effort to mitigate the economic disruptions caused by prolonged infrastructure construction. The primary purpose of the program is to offset the negative operational impacts that construction activities, including closures and detours, impose on nearby small businesses. Funding is delivered primarily through direct grants, with individual awards reaching up to fifty thousand dollars. In addition to direct financial assistance, the program may support marketing initiatives and other forms of business assistance for corridor-based enterprises. Eligible uses of funds include a wide range of operational expenses such as payroll and healthcare benefits, contract labor, working capital, rent or mortgage payments, supplier costs, machinery and equipment, utilities, and other essential business expenditures. Grant funds are considered taxable income, and recipients must account for this in their financial planning. Eligibility requirements are clearly defined and include several mandatory conditions. Applicants must be active businesses in good standing with the Maryland State Department of Assessments and Taxation, as well as compliant with federal and state tax and licensing obligations. Businesses must have been operational at their current Purple Line corridor location prior to July 1, 2023, and must currently serve customers onsite. Geographic eligibility is limited to businesses located within one quarter mile of existing or planned Purple Line tracks, and the business must primarily engage with customers at a physical commercial location rather than a residential address. Additionally, the program defines small businesses as entities with fifty or fewer employees and annual gross sales not exceeding two million dollars over the most recent five fiscal years. The program includes prioritization criteria due to its competitive nature. Not all eligible applicants will receive funding, as awards are determined based on the severity and proximity of construction impacts affecting each business. Priority is given to those located closest to significant construction disruptions within recent months or anticipated in the near future. Award amounts vary depending on both the size of the business and its specific location relative to construction zones. All award decisions are final, and no appeal process is described. Certain limitations and exclusions apply to the program. Businesses in industries such as cannabis, tobacco, alcohol, pawn services, firearms, adult entertainment, gambling, and similar sectors are not eligible for funding. There are no fees required to apply, and payments are typically issued within thirty days of award notification. Applicants must submit a complete application that includes all required fields, an IRS Form W-9, and proof of good standing with the state. Documentation from the Maryland Business Express website is sufficient to demonstrate compliance, and a formal certificate is not required. The program operates on a recurring annual cycle, with up to three funding rounds each year through 2028. For the 2026 cycle, Round 2 applications opened on June 29 and are due by August 28, with awards expected to be announced on September 29. Additional rounds follow similar structured timelines throughout the year. Applicants must submit a new application for each round they wish to be considered for, and all submissions are processed through the Maryland OneStop Portal. The program is scheduled to continue through 2028 with annual funding allocations of approximately one million dollars distributed across Prince George’s and Montgomery counties.

Priority given to businesses closest to significant construction impacts and those demonstrating operational disruption