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 2023 grant cycle has a total of $20,000 in grant funding available. Applications close at 12PM (noon) on Monday, March 20, 2023.
Applicants are encouraged to type their answers directly into the PDF application. Contact mainstreet@downtownfrederick.org if you have issues with the digital form.
Download 2023 Mission Interior Grant Application Deadline 12PM Monday, March 20, 2023
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Who can apply for funding?
Mission: Interior is focused on improving retail spaces. Locations that house retailers, restaurants, service businesses with a retail component or entertainment focused
businesses are eligible for funding. Either building owners or store owners with approval from the property owner can apply for funding.
Businesses housed in a building actively for sale are not eligible for funding. Certain businesses are not eligible for this grant source including automotive businesses, banks, discount retailers (does not include resale), phone service retailers, offices and fast food restaurants. According to the State of Maryland’s requirements for funding, the Partnership cannot provide assistance to certain uses/businesses including pawn shops, gun shops, tanning salons, massage parlors, adult video/book shops, adult entertainment facilities, check cashing facilities, gambling facilities, tattoo parlors and liquor stores. The State also prohibits the use of funds for residential properties.
The project must be located within the Partnership’s boundaries. The primary focus of the project area is Market Street between South and Ninth Streets, Patrick Street between Bentz and Wisner Streets and Everedy Square/Shab Row. Additional locations on commercially oriented downtown blocks will be considered. Contact the Partnership at 301.698.8118 to learn if your property is eligible.
A grant under this program for the same physical space may be awarded no more than once every three fiscal years, unless a compelling justification is established and approved by the Business Development Committee.
What types of improvements are eligible for funding?
The program is intended to fund improvements that are affixed to the property and therefore will not cover the cost of purchasing or installing non-fixed equipment or
inventory. The State of Maryland requires that grant funds only be used for capital improvements.
Eligible improvement projects include, but are not limited to, the following list of repairs/replacements/upgrades:
Barrier-Free Access Interior demolition Dry wall/Plaster Lighting Electrical Painting Flooring/Floor repair Plumbing
Application Process:
1. Applicants submit a completed application form by Noon on Monday, March 20, 2023. In order for the application to be considered complete, the applicant must submit:
a. Two color photos showing at least two different views of the existing building interior
b. One color photo showing the building exterior (include the full height of the building from sidewalk to rooftop)
c. Detailed sketches or drawings of the proposed improvements (as needed to show the proposed work)
d. If the applicant is seeking a project grant of $3,000 or more (a total project cost of $6,000 or more), two bids for each component of the proposed work on contractor letterhead must be submitted (one contractor may be able to complete the entire project). For projects seeking less than $3,000 in grant funding (a total project cost less than $6,000), only one bid is required. If desired, ask the Partnership for a list of contractors provided by the Frederick County Building Industry Association.
e. According to State regulations, costs associated with detailed construction drawings, conceptual design, renderings and cost estimates are not eligible for reimbursement. All construction-related permit fees required for the improvements are ineligible costs.
f. Incomplete applications will not eligible for funding.
2. The Partnership’s Business Development Committee will review the completed applications received by the deadline and rank them by the criteria listed below. The
applications will be funded beginning with the highest ranked application first until the $20,000 in available funds is completely expended. If the applications received by March 20, 2023 total less than $20,000, the Partnership may hold a second application round later in the year. The Partnership reserves the right to not fund an application even if grant dollars remain available.
3. The Partnership will notify applicants of the Business Development Committee’s decisions.
4. 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.
5. The Partnership will issue a letter of commitment when MHT approval is granted. The letter will include the specific amount granted and any conditions of approval. The amount of the grant award is set out in the letter of commitment and will not be changed after project initiation. Work completed prior to a letter of commitment is not eligible for funding.
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 building located in the Frederick Town Historic District that is > 50 years old
- Building must include no more than 10,000 square feet based on assessed square footage as defined by SDAT
- Commercial, multi-family residential or mixed use buildings
- Utilizes a water connection not to exceed 6” to City water main
- 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 and Incentive Programs
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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