Mission: Interior Grant
Through its Mission: Interior program, the Partnership offers up to $5,000 in matching grants to improve the interior of your retail business. The 2021 grant cycle is currently open, with a total of $20,000 in grant funding available. All applications are due by 4PM on Monday, June 21, 2021.
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Who can apply for funding?
Mission: Interior is focused on improving retail spaces. Locations that house either retail shops or restaurants are eligible for funding. Either building owners or store owners with authorization from the property owner can apply for funding. See the application for complete details.
What types of improvements are eligible for funding?
Funds can support interior capital improvements including (but not limited to) flooring, dry wall/plaster, barrier-free access enhancements and more. See the application for complete details.
Application Process:
- 2021 Mission: Interior grant applications are due by 4PM on Monday, June 21, 2021
- The Partnership’s Business Development Committee reviews all completed applications received by the deadline and ranks them by criteria listed in the application
- The Partnership then notifies applicants of the Business Development Committee’s decisions
- The Partnership will forward the applications selected for funding to the Maryland Historic Trust (MHT) as required by the State of Maryland. MHT has 30 days to review the project
- The Partnership will issue a letter of commitment when MHT approval is granted
Contact the Partnership at 301.698.8118 with any questions.
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Facade Improvement Grant
The Partnership can offer you up to $10,000 to upgrade your Downtown Frederick building facade. Interested?
The process is easy! Fill out the one page application and you are on your way to a matching grant for your facade improvement. The Partnership will provide 50 percent of the facade improvement costs up to a maximum grant amount of $10,000. Grants can be provided to either the property owner or the tenant/business owner.
The project must be approved prior to beginning work. Painting, awnings, lighting, signage and other projects are eligible for funding.The grants are available to commercial building facades in Downtown Frederick: including, but not limited to, Market Street between South and Seventh Streets, Patrick Street between Bentz and Wisner Streets and in Everedy Square/Shab Row. See application for project details or call the Partnership office at 301.698.8118 for more information.
Grow Program
Offered by the City of Frederick’s Department of Economic Development, the Grow Small Business Assistance Fund supports businesses moving to or expanding within the City by providing micro grants.
Main Street Small Business Relief Grant
Opened in the Spring of 2021, Downtown Frederick Partnership’s Main Street Small Business Relief Grant Program provided working capital and COVID-19 adaptation support grants to Downtown Frederick retail, restaurant, craft beverage and personal service businesses. The program was created with funding provided by the State of Maryland under Governor Hogan’s Maryland Strong: Economic Recovery Initiative.
The application period has closed and all grant awards have been made. All grant dollars received by eligible businesses must be spent by June 30, 2021. For more information about this program, visit downtownfrederick.org/mainstreetgrant.
Fire Suppression Incentive Program
Fire safety is of particular concern in the Frederick Town Historic District given the construction methods, materials and density found downtown. The high costs of installing sprinklers are a deterrent to improving personal safety and protecting the historic buildings in Downtown Frederick.
Costs impact smaller commercial/multi-family/mixed use buildings disproportionally and may make sprinklers not financially feasible. Building owners are incentivized under this program to install sprinklers in order to improve personal safety while helping to preserve the historic fabric of Downtown Frederick. The program also will have an economic benefit by increasing utilization of buildings as well as stabilizing or improving property values.
The parameters of the Partnership’s Fire Suppression Incentive Program are described below. Please call the Partnership at 301.698.8118 or email mainstreet@downtownfrederick.
Eligibility
- Existing commercial, multi-family residential or mixed use building located in the Frederick Town Historic District that is > 50 years old
- Seeking a new sprinkler system
- Building is to be sprinklered in accordance with City requirements and the appropriate NFPA sprinkler standard
Incentive
- Provides a grant of up to $25,000 for a new sprinkler system
- Requires 50/50 grant match by the owner
Application Process
- Download an application and submit it to the Partnership
- Application reviewed by Partnership for completeness
- Processed on a first-come, first-served basis
Tax Credits
Historic Preservation Property Tax Credit (City)
Property owners can apply for a property tax credit for 25 percent of the cost, up to a maximum of $7,500, to rehabilitate the exterior of a building located within the historic district overlay. More info.
Small Business Tax Credit (County)
Businesses who obtain at least 2,500 square feet of new or expanded premises and employ at least five people in full-time jobs during a 24-month period in the same time period, may be eligible for a Small Business Tax Credit. More info.
Competitive Commercial Tax Credit (State)
The Maryland Historical Trust offers a small commercial tax credit for rehabilitation projects under $500,000. Eligible projects may earn a state income tax credit equal to 20 percent of qualified rehabilitation expenditures. More info.
Federal Historic Preservation Tax Credits (Federal)
The Federal Historic Preservation Tax Incentives program encourages private sector investment in the rehabilitation and re-use of historic buildings. A 20 percent tax credit is available for historic, income producing buildings and a ten percent tax credit is available for non-historic buildings placed in use before 1936. More info.
Downtown Frederick Arts & Entertainment District Tax Credit (City & County)
In 2003, Downtown Frederick became a state designated Arts & Entertainment District, a program administered by the Maryland Department of Business and Economic Development (DBED) and overseen by the Maryland Comptroller’s Office. The designation provides a great opportunity to highlight the many attractions that make Downtown Frederick an arts destination. In addition to the marketing benefits, the designation also offers a tax deduction for eligible artists, an exemption from state admission, an amusement tax for certified arts activities and a property tax credit for buildings renovated or constructed for an arts related use.
Maryland’s Arts & Entertainment Districts provide a structure for creative placemaking, helping to develop and promote community involvement, tourism and revitalization through tax-related incentives that attract artists, arts organizations and other creative enterprises to towns and cities across the state of Maryland. Find more information about the statewide program through the Maryland State Arts Council.
The Downtown Frederick A&E District is co-managed by Downtown Frederick Partnership and the Frederick Arts Council. Both organizations are involved in marketing the district and publicizing the available tax credits. However, neither organization plays a formal role in reviewing or administering the tax credits that are a part of this program. Both organizations want to ensure that as many businesses as possible benefit from the Downtown Frederick A&E District. If you need additional information, please contact either organization as listed below.
Kara Norman, Downtown Frederick Partnership | 301.698.8118 | kara@downtownfrederick.org
Louise Kennelly, Frederick Arts Council | 301.662.4190 | kennelly@frederickartscouncil.org
- Tax Deduction: The tax deduction – or income tax subtraction modification – is not a tax credit. Instead, artists who create and sell work within the district are not taxed on the income derived from art and art enterprises. This tax benefit only applies at the state level. Artists continue to pay the full amount of federal income tax. Artists who would like to take advantage of the program must submit Maryland State Tax Form 502AE when you file your state income tax returns. The instructions for this form include the state’s definition of art-derived income. Questions regarding how the artist income tax benefit works should be addressed to the Comptroller of Maryland at taxhelp@comp.state.md.us.
- Admission & Amusement Tax Exemption: The City of Frederick has adopted a ten-year exemption from the Admissions and Amusement Tax for those certified arts and entertainment activities occurring within the Downtown Frederick Arts & Entertainment District boundaries.
- Property Tax Credits: Both the City of Frederick and Frederick County have enacted property tax credits for the renovation or construction of arts related spaces with the Downtown Frederick Arts & Entertainment District boundaries. Only the increase in assessed valuation of the portion of the property renovated or constructed for a certified arts use is eligible for the property tax credit. The property tax credit is available for seven years and follows a schedule of YEARS 1-4: 100% Exempt, YEAR 5: 75% Exempt, YEAR 6: 50% Exempt, YEAR 7: 25% Exempt, YEAR 8+: 0% Exempt.
- Artist Income Tax Benefit: To qualify for the artist income tax benefit, you must at least meet three minimum criteria. (1) Own or rent residential property within Maryland. (2) Create artistic work in any A&E District. (3) Have generated income from the sale or performance of art within any A&E District. If you can meet all three of the above criteria, then you may be eligible for a tax deduction on your state income tax.
Finance & Incentive Programs
Small Business Loan Guarantee (County)
The program provides a loan guarantee for up to 80% with a maximum of $50,000 for growth-related expansion projects to existing businesses and provides funds for the purchase of real estate, machinery, equipment, inventory, working capital and renovation of real estate for start-up businesses (or those in business for less than two years). More info.
Neighborhood Business Works (DHCD)
Small businesses and startups in Maryland can get help to grow through a range of financing programs available from the Maryland Department of Housing and Community Development. These programs are designed to support lending and financing through traditional lenders, and can make the difference between a project launching or not. More info.
State of Maryland Finance Programs (Commerce)
The Maryland Department of Commerce offers numerous finance programs and tax credits for businesses. For specific questions, contact Tamar Osterman, Senior Business Development Representative, at 443.902.4487 or tamar.osterman@maryland.gov.
Upcoming Downtown Events
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