City of Hagerstown CDBG Microenterprise Grant Program

The City of Hagerstown’s Microenterprise Grant Program is a local economic development initiative designed to stimulate small-scale business activity among low-to-moderate income residents within the city limits. Rooted in the 2021–2025 Community Development Block Grant (CDBG) Consolidated Plan, the program aims to expand employment opportunities, support job creation, revitalize underused commercial spaces, and promote economic resilience. Administered by the Department of Community and Economic Development, the program operates with CDBG funding and specifically targets microenterprises—defined as for-profit businesses with five or fewer employees, including the owner. The program provides grants ranging from $2,500 to $5,000, disbursed on a reimbursement basis after submission of eligible receipts. Grant funds can be applied toward a variety of business development activities, including acquisition of equipment, inventory purchase, necessary fixed assets (such as vehicles or IT infrastructure), professional services, marketing, business promotion, entrepreneurial training, and operational expenses like payroll and commercial rent or utilities. However, funds cannot be used for real property improvements, political or sectarian activities, residential expenses, debt repayment, or any costs incurred before grant approval. Eligibility criteria are twofold: the business must qualify as a microenterprise and be located within the corporate boundaries of Hagerstown, and the business owner must meet income thresholds based on household size as set by the U.S. Department of Housing and Urban Development (HUD). Additional criteria require businesses to be private, for-profit, in good standing with city and state agencies, and in compliance with Hagerstown regulations. Businesses must have operated for at least 12 months before applying. If less than a year old, applicants must submit a business plan and evidence of consultation with a recognized business advisory group. To apply, interested businesses must first complete a pre-screening questionnaire. Upon review, city staff follow up with the formal application process. Required documentation includes the application form, federal tax returns and income verification documents, a lease agreement (for tenants in commercial space), financial projections, and, where applicable, business plans and records of counseling services. Income verification necessitates submission of recent pay stubs, award letters for benefits income, two years of tax returns, and bank statements. Applications are accepted on a rolling basis with no fixed submission deadline. However, if all program funds are depleted, new applications are placed on a waiting list in case additional resources become available. Because the program operates without a match requirement, it is particularly accessible for businesses that may not have the capital to co-invest in traditional grant models. The City may request additional documentation to confirm eligibility or clarify submissions. Questions and correspondence related to the Microenterprise Grant Program can be directed to the Department of Community and Economic Development at [email protected] or by calling 301-739-8577 ext. 111. City Hall, located at 1 E. Franklin Street, Hagerstown, MD, operates from 8:00 AM to 4:00 PM on weekdays, with some departments closing earlier on Tuesdays.

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