City of Hagerstown CDBG Microenterprise Grant Program

The City of Hagerstown administers the Microenterprise Grant Program (MGP) as part of its broader Community Development Block Grant (CDBG) initiatives, specifically outlined in the 2021–2025 Consolidated Plan. This local funding program is designed to foster employment growth and entrepreneurial opportunity for low- to moderate-income residents within Hagerstown's corporate boundaries. The program aligns with goals of job creation and retention, business stabilization, and commercial revitalization, particularly targeting microenterprise businesses as defined by the U.S. Department of Housing and Urban Development. The Microenterprise Grant Program is intended to support private, for-profit businesses with five or fewer employees, including the business owner(s). These businesses must be located within Hagerstown or, in the case of mobile “roving” businesses, must conduct at least two-thirds of their operations within city limits. Qualifying businesses must be in good standing with both the City of Hagerstown and the State of Maryland and compliant with local land use regulations. Businesses must also be operational for at least 12 months at the time of application unless they provide a business plan and evidence of engagement with business counseling services. Grants range from $2,500 to $5,000 and are provided on a reimbursement basis, contingent upon submission of approved receipts. Eligible expenses include equipment acquisition, inventory purchases, technology upgrades, marketing services, entrepreneurial training, and operational costs such as payroll, rent (for commercial locations), and utilities. Ineligible uses include real estate rehabilitation, residential-based utility or rent payments, political or religious activities, and the repayment of existing debt. Importantly, no private match is required for this program. The application process is initiated through a mandatory pre-screening questionnaire. Upon submission, city staff will review the responses and contact applicants with further instructions and access to the full application. The required documents for submission include the application form, business tax returns and bank statements, profit and loss statements, executed leases or permits (depending on the location), and comprehensive income verification documents for household members. Applications missing any of these materials will not be reviewed until completed. There is no fixed deadline for this program; applications are accepted on a rolling basis until funds are exhausted. If funding is depleted, applications may be placed on a waitlist for future consideration should additional funding become available. First-time applicants receive priority consideration. Businesses that have previously received funding must wait three years before reapplying, and no household may receive more than two awards in total. For inquiries, applicants may contact the Department of Community and Economic Development at dced@hagerstownmd.org or by phone at 301-739-8577 ext. 111. The program office is located at City Hall, 1 E. Franklin St., Hagerstown, MD 21740. Office hours are Monday through Friday from 8:00 AM to 4:00 PM, with permitting services closing at 3:00 PM on Tuesdays. Applicants should allow sufficient time to gather the required documentation and ensure eligibility before beginning the application process.

Applications incomplete without all required documentation will not be reviewed. First-time applicants prioritized. Repeat recipients limited to two per household.