The Purple Line Small Business Grant Program is an initiative administered by the Maryland Department of Transportation (MDOT) to support small businesses along the Purple Line Light Rail corridor. This program was developed in response to the impacts caused by ongoing construction, with the goal of mitigating disruptions and maintaining the viability of businesses operating near the construction zones. The Purple Line project is a significant infrastructure effort that has led to closures, detours, and other changes affecting daily operations of businesses in its vicinity.

The grant program offers direct financial support to eligible small businesses, providing awards of up to $50,000 to help offset business-related expenses resulting from construction impacts. Allowable uses of the grant funds include payroll and healthcare benefits, contract labor, rent or mortgage for business properties, working capital, utility payments, and other critical operating costs. Additionally, the program may allocate funds for marketing and broader business support initiatives for enterprises along the corridor. Recipients are encouraged to register for electronic funds transfer to facilitate faster disbursement of funds, typically processed within thirty days of award notification.

Eligibility criteria are specific and aim to ensure support reaches the most affected businesses. To qualify, a business must have been operational at its current location prior to January 1, 2022, and be located within one-quarter mile of the Purple Line tracks. It must also be in good standing with the Maryland State Department of Assessments and Taxation, and with all federal and state taxing and licensing authorities. Eligible businesses must either have 50 or fewer employees, an average of $2 million or less in gross sales over the past three fiscal years, or be certified under Maryland’s Small Business Reserve Program.

Priority is given to businesses in areas facing significant construction impacts in the past or upcoming three months, as well as those located within Sustainable Communities, Priority Funding Areas, or Opportunity Zones. The program excludes certain business types from eligibility, including cannabis-based businesses, adult entertainment venues, gambling facilities, and others. Each eligible business may receive up to two awards per year, with the award amount influenced by gross sales and recent or anticipated construction activity near the business.

The Purple Line Small Business Grant Program will run from 2025 through 2028, with an annual budget of $1 million split between Prince George’s and Montgomery counties. Each year features three rounds of applications and awards. In 2025, the first round opened on February 10 and closed on March 14, with awards to be announced by April 30. The second round will open on June 2 and close on June 27, with awards announced on July 28. The third and final round of 2025 will open on September 8, close on October 24, and announce awards by November 19. The program continues the efforts of the earlier Purple Line Construction Zone Grant Program and is supported in part by the Purple Line Transit Partners, MDOT’s private sector collaborator.