When the owners of Red Line Studios moved their company from Brooklyn to its present digs at 181 Broadway, they did so hoping it would become Lower Manhattan’s premier suite for audio and video production and post-production.

But since they moved into their space—the third floor of a 90-year-old low-rise building—in 2008, above-ground work on the nearby Fulton Street Transit Center has swung into full gear, wreaking havoc on the streetscape below the studio. The noise from construction operations on the Transit Center's main building and Dey Street headhouse routinely compromise audio recording, and the curbs of blocks surrounding the building are almost always unavailable for equipment deliveries.

“Just last week, we lost a client because they so put off by what they saw when they got here,” said Matthew Pellowski, a producer and co-owner of Red Line. “That’s a $50,000 contract we won’t get because of the construction.”

It was not surprising, given Red Line’s plight, that officials for the Lower Manhattan Development Corp. chose the studio as the backdrop for their announcement Wednesday morning that the agency was expanding its grant program designed to support small businesses suffering as a result of public construction projects Downtown. The agency has added $1 million to the total sum of money available—from $5 million to $6 million—and extended the lifespan of the program by five years, until Dec. 31, 2015.

“We’re happy that construction is happening, and we want that to continue,” LMDC Board Chairman Avi Schick said. “But we want to make sure that those business owners that chose to stay here can get through the construction and thrive, and come out the other end.”

Another key change in the program is an increase in the maximum amount of money a business can receive, from $25,000 to $35,000. Businesses that already reached the $25,000 cap under the old guidelines will be eligible for the $10,000 difference, once a year has passed since their last grant receipt.

“As is frequently the case with major construction projects, the progress that we celebrate down here has proven costly,” said state Assembly Speaker Sheldon Silver Wednesday morning. Silver, along with State Senator Daniel Squadron, other elected officials and Community Board 1, had been pushing the LMDC for more than a year to widen the scope of businesses covered in its grant program. Under the program’s old guidelines, only ground- and second-floor retail businesses on certain blocks in Lower Manhattan were eligible for the grant money.

"This program is exactly what we need in an area where, too often, government hasn't done enough," Squadron said. "For a lot of businesses, it's going to mean the difference between success and failure, between shutting down and staying open."

As of Wednesday, the program will cover all businesses—with less than 50 employees—in all of Lower Manhattan below Canal Street, as long as the business owner can demonstrate a financial loss caused by a public construction project within a block of their location.

Bill Tropp, owner of the 57-year-old Tropp Printing Co. one floor above Red Line Studios, said the program’s expansion could not come at a better time, as construction of the Transit Center across the street looks to extend into 2014.

“We’ve been through a lot here,” Tropp said. “We want to stay here, and this program is going to allow us to stay here.”

Following the announcement, Pellowski said he planned to apply for the grant as soon as he could, and would likely use the money for additional soundproofing to keep construction noise out of his studio.

“We understand that Downtown needs this construciton,” Pellowski said. “We’re just trying to get through that. We know it’s going to be great here when it’s all finished, and we’re in it for the long haul.”

Since the program began, business owners have complained LMDC has not adequately publicized it. An informal survey conducted by Pace University students revealed that approximately two-thirds of eligible businesses were unaware of the program’s existence. At Wednesday’s press conference, LMDC President David Emil said representatives from the agency would be “conducting door-to-door” visits with Downtown businesses, especially those in neighborhoods currently affected by public construction projects.

“We’re very sensitive to the fact that people may not know about this,” Emil said. “Our hope is that we’ll be able to get to every business and at least afford them the opportunity to apply.”

For more information or to apply for the Small Firm Assistance Program, visit http://www.renewnyc.com/ProjectsAndPrograms/small_firms.asp.