MDOT Small Business Grant

The Program will primarily take the form of direct grants up to $50,000 to eligible small businesses to help offset the impact that construction closures or detours may have on business operations. Program activities and funding may also include marketing funding for businesses along the corridor and other business support. Grant funds must be used for business-related expenses, including payroll/healthcare benefits, contract labor, working capital, business rent or mortgage payments for business property, supplier payments, machinery and equipment, critical operating expenses, and utility payments for business locations.  Note that grant payments are considered taxable income.

To be eligible for a grant, a business must meet all of the following requirements:

Business Status

1. Be an existing business in good standing with the Maryland State Department of Assessments and Taxation.  Documentation that the business is Active and in Good Standing with the State can be obtained from the Maryland Business Express website. A screenshot of the results will suffice, a formal certificate of good standing is not required.

2. The business must also be in good standing with all federal and State taxing and licensing authorities.  Grant payments are subject to interception by the IRS and/or Maryland Comptroller if outstanding debts are owed to the federal or State government.

3. The business must have been open and operational at its current location along the Purple Line alignment prior to July 1, 2023.  The business must currently be open to customers.

Location

The business must interact directly with customers primarily onsite at a business location that is within one-quarter mile of the existing or future Purple Line Light Rail tracks.  Businesses at residential locations are not eligible.

Small Business

Must be a small business, defined as one of the following:

·         An entity with 50 or fewer employees in the most recently completed fiscal year; AND

·         An entity whose annual gross sales did not exceed $2,000,000 in its most recently completed five fiscal years.

Prioritization of Funding

This is a highly competitive grant program and not all eligible applicants will receive grants. Grant awards to eligible businesses will be prioritized based on the location of the business and its proximity to the most significant construction impacts in the previous six months or anticipated for the next six months.  Grant amounts will vary based on business size and location.  All grant award decisions are final.

Eligible businesses may receive grants of up to $50,000 per award.  Grant payments will generally be made within thirty days of notice of grant award.  There are no fees or costs to apply for a grant. However, please note that grants are taxable. Businesses ineligible to receive grant awards include cannabis-, tobacco-, and alcohol-based businesses; pawn shops; gun shops; massage parlors; adult video/book shops; adult entertainment facilities; tanning salons; gambling facilities; and tattoo parlors.

Applications must be complete to be eligible for award.  A complete application includes all required fields, submission of an IRS Tax Form W-9, and proof that that the business is in good standing with the Maryland State Department of Assessments and Taxation.  An IRS Tax Form W-9 can be obtained from the IRS website.  Documentation that the business is Active and in Good Standing with the State can be obtained from the Maryland Business Express website. A screenshot of the results will suffice, a formal certificate of good standing is not required. 

The application and eligibility requirements for Round 3 are different than previous rounds.  Please be sure to review the eligibility requirements and complete a new application. Businesses are required to submit a new application for each grant round to be considered for award.

Businesses are highly encouraged to apply through the OneStop application portal.  PDF applications are also accepted and may be requested from PurpleLineBusinessGrants@mdot.maryland.gov.  Applications for Round 3 must be submitted by November 7, 2025 at 11:59 p.m.

The Program launched in 2025 and will end in 2028. It will be funded at $1 million per year, with funding allocated between Prince George’s and Montgomery counties. Each year, there will be up to three rounds of grant applications and awards. The dates for each round of applications and awards will be announced at the beginning of each year.

For 2025, the following schedule will apply:

Funding support is provided by Purple Line Transit Partners, the Maryland Department of Transportation’s private sector partner in the construction, operation, and maintenance of the Purple Line Light Rail. The program is a successor to the Purple Line Construction Zone Grant Program, which provided grants in 2023 and 2024 from the State of Maryland administered by Prince George’s and Montgomery counties.