Purple Line Small Business Grants

The Maryland Department of Transportation (MDOT) Small Business Grant Program is a targeted funding initiative designed to support small businesses located along the Purple Line Light Rail corridor. Administered by MDOT in partnership with Purple Line Transit Partners, this program responds to the ongoing construction impacts faced by local enterprises in Prince George’s and Montgomery counties. Since construction on the 16-mile Purple Line corridor began in 2016 and is scheduled to continue through late 2027, many businesses situated within one-quarter mile of the construction zone have experienced disruption to their operations. The grant program is structured to provide financial relief in the form of direct grants, as well as broader business support resources. Launched in 2025, the MDOT Small Business Grant Program builds upon earlier efforts under the Purple Line Construction Zone Grant Program. It is funded at a level of $1 million per year through 2028, with allocations divided between the two impacted counties. Eligible businesses may receive grants of up to $50,000 per round, depending on their size and proximity to the most heavily impacted construction areas. Not all applicants will receive awards, as the program is highly competitive and prioritization is based on geographic impact from recent or upcoming construction activity. Grant payments are generally issued within 30 days of award notice and are considered taxable income. The program supports a broad range of eligible business-related expenses. These include payroll, healthcare benefits, contract labor, rent or mortgage for business property, utility payments, supplier costs, equipment purchases, and critical operating costs. In addition to direct financial support, the program may also fund marketing initiatives and other forms of business development assistance along the corridor. However, several business types are explicitly excluded from eligibility, such as those involved in cannabis, tobacco, or alcohol sales; adult entertainment; gambling; and others like pawn shops, massage parlors, and tattoo parlors. To be eligible, applicants must meet several criteria. Businesses must be operational and in good standing with both the Maryland State Department of Assessments and Taxation and federal and state tax authorities. The business must have been open and active at its current location along the Purple Line prior to July 1, 2023, and must currently be open to customers. Importantly, only businesses that interact with customers onsite within the designated proximity to the Purple Line tracks are eligible. The definition of a small business under this program includes those with 50 or fewer employees in the most recently completed fiscal year and annual gross sales not exceeding $2 million over the last five years. The application process is administered through the Maryland OneStop Portal, with three grant rounds scheduled annually. Each application must include a completed IRS W-9 form and documentation verifying good standing status with the Maryland State Department of Assessments and Taxation. For the 2026 funding year, Round 1 opened on March 2 and closes on April 3, with award announcements expected by May 12. Round 2 opens on June 29 and closes on July 31, with awards by September 1. Round 3 will run from October 12 through November 7, with awards expected on December 16. Applicants may apply in each round, and submissions are reviewed based on location, construction impact, and business size. Applications are assessed only after the submission window has closed. All applicants will be notified via email regarding the outcome of their submission, and award decisions are final. While applications are strongly encouraged to be submitted online through the portal, PDF applications are available upon request via email. This ensures broader accessibility for impacted businesses along the Purple Line corridor.

Clearly describe the financial and operational impact of construction; applications are competitive and prioritized by proximity