Microenterprise Grant Program (CDBG)

Microenterprise Grant Program (CDBG) is sponsored by City of Hagerstown, Maryland. Provides reimbursable grants to small, for-profit businesses with five or fewer employees (including owners) located in or primarily operating within Hagerstown.

CDBG Microenterprise Grant Program | Hagerstown, MD - Official Website Housing & Community Development CDBG Microenterprise Grant Program CDBG Microenterprise Grant Program The City of Hagerstown is currently accepting applications from for-profit microenterprise businesses for its Microenterprise Grant Program. Interested in applying for the program?

Click through the tiles below to see if your business qualifies and then submit our pre-screening questionnaire. A member of City Staff will then be in touch to confirm receipt of the survey and provide an application for the program. Any questions or concerns about the Microenterprise Grant Program can be directed to Letizia Turner, Planning and Outreach Coordinator, at lturner@hagerstownmd.

org or 301-739-8577 ext. 820. Business Eligibility Criteria Income Eligibility Criteria In the 2026-2030 Community Development Block Grant (CDBG) Consolidated Plan, the City identified the need to improve and expand employment opportunities for low-to-moderate income persons in the City of Hagerstown.

The Microenterprise Grant Program was developed as a means to address this opportunity for growth as well as to assist with the following goals: Support and encourage new job creation, job retention, and employment and job training services for low-to-moderate income residents Plan and promote the revitalization of vacant commercial spaces; and, Support business and commercial growth through business stabilization and/or business expansion.

Business Eligibility Criteria Business Eligibility Criteria A business owner/business may qualify for the Microenterprise Grant Program if they meet the following eligibility criteria: Business must be located in the corporate boundaries of the City of Hagerstown; Businesses that qualify as a “roving” business (i.e. a mobile business that travels from client to client without a particular location) must document that at least two-thirds of their business occurs in the corporate boundaries of the City of Hagerstown; ‘Roving’ businesses must have been in operation for at least six (6) months at the time of application to provide sufficient history of service locations.

Business must have five (5) or fewer total employees including the owner(s) in order qualify as a Microenterprise.

For the purposes of this program there is no distinction between a part-time and a full-time employee in the headcount for the business; Independent contractors who perform routine services expected of the business will be considered employees; Business must be a private, for-profit business; Business and owner(s) must be in good standing with the City and State of Maryland; Business and owner(s) must be in compliance with all applicable City of Hagerstown regulations including the Land Management Code; and, Business must be established and operating for at least 12 months at time of application Businesses that do not meet the above timeframe may still apply for funding, however, the applicant is required to submit a business plan and provide documentation of a consultation with a business counseling service (Small Business Development Council, SCORE, etc…) in addition to all other application requirements.

Priority will be given to first-time applicants, and previous awardees must wait a period of three (3) years if wishing to reapply. Repeat applicants will be reviewed on a case-by-case basis with not more than two grants to be awarded per household. Any business is eligible for this program as long as they meet the above criteria and qualify as a microenterprise.

The following list of example eligible businesses is not exhaustive and meant to serve as a guide for who might be an eligible applicant: Barber shops or hair salons Businesses that restrict access for minors (18+) Rental/property investment businesses Cannabis-based businesses Income Eligibility Criteria Income Eligibility Criteria In addition to the business eligibility criteria, the business’ owner must also meet income eligibility qualifications as established by the U.S. Department of Housing and Urban Development (HUD).

An eligible applicant must have an income that is either at or below the following incomes levels based on the number of persons residing in their household: Number of Persons in Household 8 Maximum Income $57,700 $65,950 $74,200 $82,400 $89,000 $95,600 $102,200 $108,800 Please note that income is defined not only as salary/wages but any business income as reported on the owner's most recent tax return.

Income eligibility is determined through the processing of the below documents which must also be submitted at the time of application: Copies of one (1) months most recent pay stubs for each employed person in the household If income is received from pension, social security, disability, annuity or any other income source, copies of award letters must be submitted Two (2) years of federal income tax returns/W-2’s Copies of two (2) most recent months household bank statements (savings and checking, all pages) In the event that a household owns more than one business that qualifies based on the above criteria, only one business will be eligible to receive grant funding.

The minimum grant amount for this program is $2,500 and the maximum request is $5,000. No private match required.

Grant funding may be used for the following purposes: Acquisition of business equipment Necessary fixed assets (machinery, IT equipment, vehicles) Professional services including marketing and business promotion Technological infrastructure and upgrades Operational expenses including payroll, utilities, rent/mortgage (for commercial locations) Grant funding may not be used for the following purposes: Real property improvements or rehabilitation Utilities, rent/mortgage for residential or home based business occupancies Repayment of existing debt Reimbursement of costs incurred prior to grant approval Applicants must submit the following required documents with their application at the time of submissions.

Applications will not be reviewed until all required pieces have been received.

Business’ Previous Two Years Income Tax and Schedule C of IRS Form 1040 (if business has been established for one year or more) Two (2) most recent months business bank statements (all pages) (all accounts) Completed Vendor Paperwork Executed Lease Agreement (if a business tenant in a commercial space) OR Home Business Permit (if a business is conducted in a residential space) Business Plan and Financial Projections, and Documentation of Business Counseling Service (only if business has not been established for one year) Profit and Loss statement Income Verification Documents Copies of one (1) month's most recent pay stubs for each employed person in the household Copy of award letters for any income from pension, social security, disability, annuity or other income source for each person in the household Two (2) years of federal income tax returns AND W-2’s, 1099's, 1098's, or signed affidavit of tax filing status for each person in the household Copies of two (2) most recent months bank statements (checking and savings, all pages) for each employed person in household Note: the City may request additional documentation if necessary to ensure program eligibility.

The following are commonly asked questions related to the Microenterprise Grant Program. What is a Microenterprise? The U.S. Department of Housing and Urban Development (the federal agency responsible for the disbursement of CDBG funding) defines a microenterprise as a commercial enterprise that has five or fewer employees, one or more of whom owns the enterprise.

This number reflects the total headcount of employees associated with a business and does not factor in full time equivalencies. How Much Funding is Available? The minimum grant award for this program is $2,500, the maximum is $5,000.

There is no private match required as a part of this grant. PLEASE NOTE : Funding is administered as a reimbursement upon submission of approved receipts by the applicant. When are Applications Due?

The Microenterprise Grant Program is administered on a rolling basis with no fixed deadline for submission. Any applications that are received after all grant funding has been expended will be placed on a waitlist in the event additional funding becomes available. Are there any limits on the grant?

Yes. Priority will be given to first-time applicants, and previous awardees must wait a period of three (3) years if wishing to reapply. Repeat applicants will be reviewed on a case-by-case basis with not more than two grants to be awarded per household.

Guidelines- Micronenterprise Grant Program