Maryland launches $4 million Purple Line small‑business grant; Montgomery County extends $900,000 aid

The Maryland Department of Transportation on Feb. 10 announced a $4,000,000 Small Business Assistance Grant program to help businesses affected by construction on the Purple Line, state and county officials said at a joint meeting of Montgomery County’s Transportation and Environment Committee and Economic Development Committee in Rockville.

The grant program will run four years with $1 million available each year, with individual awards of up to $50,000 and eligibility for businesses within one quarter‑mile of the Purple Line alignment, Jacqueline Hartman, assistant secretary of transportation investments for the Maryland Department of Transportation, told the committees. "We are launching a $4,000,000, small business assistance grant program," Hartman said.

The grants are intended to cover operating support and other expenses tied to construction impacts, Hartman said, and award decisions will weigh both heavy construction impacts in the prior three months and a three‑month lookahead to target businesses most affected at any given time. Eligibility criteria announced at the meeting include firms with up to 50 employees, average gross sales up to $2,000,000, or businesses eligible under the state small business enterprise program. Applications open immediately and will be accepted for approximately six weeks; officials said awards will be announced about 30 days after the application window closes.

Montgomery County officials described a separate, locally funded effort. "We've got 40 businesses that are receiving monthly stipends through the county's $900,000," Jean Smith, manager of the Montgomery County Business Center, said. Most of those businesses receive up to $1,800 a month; 26 are on Bonifant Street and 14 are on Piney Branch, Smith said. County stipends will continue through the current fiscal year (to June/July), Smith said, and recipients must remain in good standing with the state and have verifiable occupancy.

Chamber leaders and regional staff described the economic strain on downtown corridors where construction has concentrated. "It's been messy. It's been economically impactful," Stephanie Halsing, president and CEO of the Greater Silver Spring Chamber of Commerce, said, adding that some businesses have been "demoralized" by reduced foot traffic and restricted access. Halsing named Fenwick Beer and Wine, a downtown florist and a nearby taqueria as examples of businesses affected by the closing of the Spring Street bridge and related detours.

Council and county speakers said the chief nonfinancial challenges reported by businesses are parking and access, noisy and obstructed streets, and lost revenue. Jacob Newman, Silver Spring regional director, and other officials said staff and partners have been conducting door‑to‑door outreach and weekly checks to help businesses navigate licensing and state standing requirements.

Officials said the state program broadens eligibility from earlier rounds and allows grant dollars to be used for advertising and marketing to help businesses rebuild customer traffic. Ray Bates, senior project director for the Purple Line at the Maryland Transit Administration, noted outreach efforts including a business directory and a monthly Purple Line newsletter that spotlights businesses along the alignment.

Committee members asked about specific program limits and exclusions. The initial eligibility window requires businesses to have been in operation before Jan. 1, 2022; officials said the program can be modified in future rounds and that they would continue to discuss expanding eligibility. Policy language discussed at the meeting also lists categories often excluded from public small‑business grant programs — such as some cannabis retailers and certain adult‑oriented businesses — and officials said they will clarify those exclusions during outreach.

Council members and presenters urged quick, multilingual outreach given the short application window and urged coordination so county and state awards can complement one another. Montgomery County officials said awards from the state program would be considered independently of the county stipends, and it would be possible for a business to receive both county and state assistance.

Applications for the state program are due in mid‑March; officials said the application deadline is March 14 and that award recipients will be announced about a month later. County and state staff said they would continue door‑to‑door outreach, provide documentation support for businesses seeking to get in good standing with the state, and explore marketing and map‑based efforts to direct future Purple Line riders to local businesses.

Public‑facing next steps identified at the meeting include expanded outreach in multiple languages, clarification of excluded business categories, using grant funds for advertising, and coordinated marketing and celebration events after segments of the project open to restore foot traffic and visibility for affected businesses. The Maryland Department of Transportation has estimated construction will continue ahead of a planned winter 2027 opening for the Purple Line; officials emphasized the grants are intended to help businesses remain open through construction and benefit from renewed ridership once service begins.