Certified Capital Companies (CAPCOs)   About the DC Certified Capital Company (CAPCO) Program   The DC Certified Capital Company (CAPCO) Program is an effort by the District of Columbia to increase private capital investment in the city’s new or expanding small businesses.   Through the DC CAPCO program, insurance companies receive a DC tax credit against their premium taxes in exchange for making $50 million available to the three CAPCOs in the form of long-term equity and debt for new or expanding small businesses based in the District.  The three DC CAPCO funds, which are called “CAPCOs,” are managed by professional venture capitalists, stimulate the creation of high-wage jobs and provide an incentive to retain, expand, and attract business to DC.    It is important to distinguish the DC CAPCO Program from a grant program; CAPCOs make investments, not grants, into qualifying businesses.  As such, the DC CAPCO Program is not well-suited to every business that meets the minimum qualifications listed below.   It is also important to understand that the CAPCOs decide which businesses to fund, based on criteria established by each CAPCO.  Additionally, the CAPCO law that created the program does not establish the terms of the funding.  Instead, business owners and the CAPCOs must negotiate all terms.  And finally, the CAPCO law does not authorize the District government to be involved in any aspect of the funding decisions, other than ensuring that the businesses that receive funding meet the minimum qualifications listed below. The CAPCO model combines private-sector expertise in identifying, evaluating, and financing businesses with the public sector's interest in a stronger local economy.  The CAPCOs consider investments in a wide range of small businesses, including, but not limited to, the following: Distribution channels Manufacturing centers Retail outlets Service companies Technology companies Transportation providers DC CAPCO Program Minimum Qualifications   In addition to having a product or service with strong commercial potential, a sound business strategy, and capable management, companies interested in applying for investment via the DC CAPCO Program must meet the following requirements: Company headquarters and principal operations must be located within the District of Columbia; 25 percent of the company's employees must be District residents; 75 percent of the company's employees must work in the District; The business must qualify as a “small business concern” as defined by the US Small Business Administration's requirements for SBA loan applicants; The business must certify that it has attempted and failed to obtain conventional financing; and The business cannot be engaged in professional services provided by accountants, lawyers or physicians. Consideration of Applications for CAPCO Investment   The CAPCOs identify, evaluate, and finance the most competitive businesses that meet the minimum qualifications listed above.  If a business meets the program’s minimum qualifications, its business plan can then be considered by the CAPCOs as an investment opportunity.  It is important to note that meeting the program’s minimum qualifications is not a guarantee that the CAPCOs will be able to make investments into that business.  Many business plans from minimally qualifying businesses are submitted to the CAPCOs for consideration and only the most commercially competitive are able to secure investment capital.    If you have a business that meets the minimal qualifications for the DC CAPCO Program, and if you have a business plan ready for consideration as well as the necessary financial records (such as tax returns from the last two years, payroll records, and personal financial statement), please contact Advantage Capital Partners, Enhanced Capital Partners, and Wilshire DC Partners.  Please email your contact information, business plan, and response to the minimum qualifications to the following individuals for consideration:   Advantage Capital Partners Douglas Beekman 2445 M Street, NW, Suite 234 Washington, DC 20037 (202) 457-4190 dbeekman@advantagecap.com   Enhanced Capital Partners Mark Slusar 2550 M Street, NW Washington, DC 20037 (202) 457-2845 mslusar@enhancedcap.com   Wilshire DC Partners Matthew Ash 1667 K Street, NW, Suite 1000 Washington, DC 20006 (202) 466-0654 mash@newtekbusinessservices.com   If your business plan is considered to be competitive for investment from a CAPCO, you will be contacted by Advantage Capital Partners, Enhanced Capital Partners, and/or Wilshire DC Partners.    For more information about the CAPCO program, select from the items below, or call DISB’s Risk Finance Bureau at (202) 727-1563. CAPCOs Rules* Qualified Business Application* CAPCO Act of 2003* Bulletin 04-RFB-001 (Revised 9/22/04): Timing of the Use of Premium Tax Credits by Certified Investors* Tax Credit Transfer Affidavit Certified Investor Annual Notification of Credit Transfer* Additional Resources   If you are interested in the CAPCO program, but need assistance developing your business plan and financial statements, you should contact one or more of the following organizations to assist you with these needs.   DC Chamber of Commerce 1300 Pennsylvania Avenue, NW Washington, DC 20004 (202) 289-8317 dcchamber.org   Howard University Small Business Development Center 2600 6th Street, NW Washington, DC 20059 (202) 806-1550 dssbdc.org       * This document is presented in Portable Document Format (PDF) and a PDF reader is required for viewing. Download a PDF reader or learn more about PDFs.