DC Business Access Capital Program: Expanding Access to Capital for Recovery and Growth
Small businesses are the backbone of any thriving economy, and in the wake of the COVID-19 pandemic, their resilience and recovery are more crucial than ever. Recognizing this, Mayor Muriel Bowser has championed the DC Business Access Capital Program (DC BizCAP), an initiative aimed at increasing access to capital for both established and aspiring businesses in the District of Columbia.
What is DC BizCAP?
DC BizCAP is a collaborative effort between the D.C. Department of Insurance, Securities and Banking (DISB) and participating lenders, designed to mitigate challenges faced by businesses in securing crucial funding. The program offers several key benefits:
Loan guarantees: The DISB provides partial loan guarantees, reducing lenders' risk and encouraging them to extend financing to businesses that might otherwise be deemed ineligible.
Reduced interest rates: DC BizCAP can help businesses secure lower interest rates on loans, making financing more affordable and manageable.
Down payment assistance: The program provides grants to eligible businesses to assist with down payments on loans, further easing the financial burden.
Mayor Bowser's Commitment:
Mayor Bowser has consistently underscored the importance of DC BizCAP as a driver of economic recovery and inclusivity. “Small businesses are so important for the vibrancy of our city. Not only do our small businesses represent the dreams and creativity of Washingtonians, they also create jobs for DC residents and support thriving commercial corridors in neighborhoods across the city,” she stated. “Whether it is through these investments in small business or other investments in infrastructure or resiliency, President Biden’s Investing in America Agenda is building stronger communities and giving more people a fair shot.”
Funding Boost from the American Rescue Plan:
The program received a significant boost in 2023 with the American Rescue Plan (ARP) allocating $62 million to D.C. through the State Small Business Credit Initiative (SSBCI). This initiative, originally established by the Obama administration, was revitalized and expanded under President Biden's ARP to address the pandemic's economic impact. These additional funds have further strengthened DC BizCAP's capacity to support local businesses.
Accessing DC BizCAP:
If you are a small business owner in D.C., you can explore if DC BizCAP is right for you by visiting the DISB website or contacting a participating lender. Eligibility requirements vary depending on the specific loan program, but generally, businesses must be located in D.C., have less than $5 million in annual revenue, and meet specific industry and creditworthiness criteria.
Additional Resources:
DC BizCAP website: https://disb.dc.gov/page/dc-bizcap-innovation-finance-program
State Small Business Credit Initiative: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci
Hopefully, by leveraging the DC Business Access Capital Program, small businesses in D.C. can gain access to the vital financial resources they need to navigate the post-pandemic landscape, fuel their growth, and contribute to the city's economic vitality.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult with an attorney regarding your specific circumstances, and always feel free to contact our offices today to see how we can assist you navigate your legal concerns.
