The fund's goal is to help businesses who wish to stay in the city, College Park’s economic development director said.
The Better Bag Bill, which passed unanimously, bans single-use plastic bags and requires at least a 10-cent fee for paper and reusable carryout bags.
Roots Natural Kitchen plans to open April 1.
Multiple businesses have closed in recent weeks in College Park, including restaurants near the University of Maryland’s campus.
City staff recommended $350,000 in funding to Grillmarx prior to the meeting.