---

Business Boost Microgrant

Offered by the Maryland Department of Housing and Community Development, the Business Boost Microgrant offers grants from $20,000 to $50,000 to support small businesses who need capital for growth and/or expansion opportunities. Applications open on September 23 at 12PM EST and will remain open until funds are exhausted.

The Business Boost microgrant assists businesses seeking to expand their business, or establish a location, with a preference to supporting home-based businesses in establishing their first commercial location outside of the home. Businesses must be located with a Sustainable Community in order to be eligible – Downtown Frederick is a qualifying Sustainable Community. Visit DHCD’s website for more information.

GROW Program

Offered by the City of Frederick’s Department of Economic Development, the GROW Program supports physical improvements by targeted businesses to commercial buildings within The City of Frederick.

Eligible applicants include small businesses with less than 25 FTEs, businesses completing a catalytic building renovation and businesses which have experienced a disaster. Additional eligibility may be considered by the City. Program participants may receive up to a 50:50 matching investment with a maximum grant of $10,000 per project. Follow this link for full program details and this link for the program application. Email business@cityoffrederickmd.gov with questions.

Façade Improvement Grant

Downtown Frederick Partnership offers a Facade Improvement Grant that will provide 50 percent of eligible facade improvement costs up to a maximum grant amount of $10,000. Applications are processed on a first come, first served basis. Grants can be provided to either the property owner or the tenant/business owner. 

Projects must be approved prior to beginning work. Painting, awnings, lighting, signage and other projects are eligible for funding. Grants are available to commercial building facades in Downtown Frederick. 

See the application for project details or email kara@downtownfrederick.org for more information.

Fire Suppression Incentive Program

The Partnership’s Fire Suppression Incentive Program provides a grant of up to $25,000 for the installation of a new sprinkler system with a 50:50 match required. Applications are processed on a first-come, first served basis.  Eligibility requirements include:

• Must be an 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, of less than 10,000 square feet, is to be sprinklered in accordance with City requirements and the appropriate NFPA sprinkler standard

Tax Credits

The Downtown Frederick Arts & Entertainment District designation offers an exemption from state admission and amusement tax for certified arts activities, a tax deduction for eligible artists and a property tax credit for buildings renovated or constructed for an arts related use. The Downtown Frederick A&E District is co-managed by Downtown Frederick Partnership and the Frederick Arts Council. The tax credits are administered by the State Comptroller’s Office. Find more information about the statewide program through the Maryland State Arts Council.

A Brownfields Property Rehabilitation Tax Credit is available for voluntary cleanup or a corrective action plan of a qualified brownfield property. Provides a five year tax credit of 50% of the City property tax attributable to the increase in the assessment of the qualified site, including improvements added to the site during the credit period. 

The Maryland Historical Trust (State of Maryland) offers a Competitive Commercial Tax Credit. Owners of income-producing properties have the opportunity to earn a state income tax credit (capped at $5 million) that is equal to 20 percent of eligible rehabilitation expenses for substantial rehabilitation projects. Substantial rehabilitation projects are defined as projects with eligible expenses that exceed the greater of the adjusted basis value of the structure or $25,000.

The Downtown Property Rehabilitation Tax Credit offers an exemption from the increase in city real estate taxes attributable to the rehabilitation of existing structures located in Downtown Frederick. Following the completion of project work, submit an application and all back-up documentation by April 30^th for the tax credit to be applied on the following fiscal year’s bill.

The High Performance Buildings Tax Credit is available to new LEED certified (or equivalent) buildings. The tax credits are granted as a percentage of the City’s property tax, determined by the performance rating of the building. Following the completion of project work, submit an application and all back-up documentation by April 30^th for the tax credit to be applied on the following fiscal year’s bill.

The City’s Historic Preservation Property Tax Credit is available to property owners for 25 percent of eligible work, up to a maximum of $7,500, to rehabilitate the exterior of a building located within the historic district overlay. This credit only applies to City property taxes. Applications are due on April 1st following the calendar year in which the expenditures were incurred. An application and a receipt transmittal form should be submitted to the City of Frederick to seek this tax credit. 

The federal Historic Rehabilitation Tax Credit provides a 20 percent tax for historic, income producing buildings when a substantial amount is spent to rehabilitate the building. 

Frederick County offers a Small Business Tax Credit to businesses that 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. The exemption schedule is as follows: 40% in the 1^st and 2^nd taxable years, 30% in the 3^rd and 4^th taxable years, 20% in the 5^th and 6^th taxable years and 0% for each taxable year thereafter. A Frederick County New Jobs Credit may be available to businesses who construct or expand by at least 5,000 square feet in a priority funding area and create at least 25 full-time jobs within the first two years.

The Maryland Historical Trust (State of Maryland) 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. Applications are accepted on a first-come, first-served rolling basis until the program cap has been reached. 

The Vacant Commercial Property Rehabilitation Tax Credit is available for the rehabilitation of a commercial property that has been vacant and marketed for at least 18 of the last 24 months prior to the start of the rehabilitation. This tax credit offers a seven-year property tax credit (City and County) on the increased assessed value of the property and calculated by the City’s Exemption Schedule. Following the completion of project work, submit an application and all back-up documentation by April 30^th for the tax credit to be applied on the following fiscal year’s bill.