Purple Line Small Business Grants

The Maryland Department of Transportation (MDOT) Small Business Grant Program was established to support small businesses along the Purple Line Light Rail corridor that are experiencing ongoing construction-related disruptions. This initiative, managed by MDOT, targets businesses with direct customer-facing operations located within a quarter-mile of the existing or future Purple Line tracks. The grant program was launched in 2025 and is expected to continue through 2028, distributing up to $1 million annually across three application rounds per year. Eligible small businesses can receive direct grants of up to $50,000 to help mitigate financial strain from construction impacts such as closures and detours. Allowable uses of grant funds include a wide range of essential business expenses such as payroll, healthcare benefits, contract labor, working capital, rent or mortgage payments, equipment and supplier costs, utility bills, and other critical operating needs. Marketing support and additional business assistance activities may also be funded. Businesses should be aware that all grants awarded are treated as taxable income. To be considered eligible, applicants must meet specific criteria. They must be currently operating and in good standing with the Maryland State Department of Assessments and Taxation, as well as all relevant federal and state tax and licensing authorities. The business must have been active at its current location along the Purple Line alignment prior to July 1, 2023, and must maintain in-person, customer-facing operations. Additionally, it must qualify as a small business, which is defined as employing 50 or fewer individuals and generating no more than $2 million in gross annual revenue in any of the past five fiscal years. Residential-based businesses are not eligible. Certain business types are explicitly excluded from eligibility, including those centered around cannabis, tobacco, alcohol, firearms, adult entertainment, gambling, tanning, massage, and pawn or tattoo services. MDOT emphasizes that this is a competitive program and that not all eligible applicants will be selected. Grant awards are prioritized based on a business’s proximity to major construction impacts, both past and anticipated, within a six-month timeframe. Award amounts vary depending on business size and proximity to disruptions. Application for Round 3 opened on October 6, 2025, and the deadline for submission is November 7, 2025, at 11:59 p.m. Businesses must submit a new application for each round, even if they previously applied. Required documentation includes a completed application, a W-9 form, and verification of good standing with the state. Submissions can be made via Maryland’s OneStop portal or by requesting a PDF application through the designated MDOT email address. This recurring grant program distributes funding across Montgomery and Prince George’s Counties. Award notifications for Round 3 are expected by December 16, 2025. The structure and frequency of the program indicate that similar rounds will continue in future years, with announcement and application dates published annually.

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