disb

Department of Insurance, Securities and Banking
 

DC Agency Top Menu


The Department of Insurance, Securities and Banking has a new address: 1050 First Street, NE, Suite 801, Washington, DC 20002.

-A +A
Bookmark and Share

DC BizCAP - Loan Participation Program

The Loan Participation Program (LPP) is part of the District of Columbia Business Capital Program (DC BizCAP), which is funded by the U.S. Treasury State Small Business Credit Initiative (Initiative). The Initiative, a $1.5 billion fund, was established by the Small Business Jobs Act of 2010 to assist small businesses and entrepreneurs who were adversely affected by the economic recession of 2008 and the credit crisis that followed. The District of Columbia was allocated $13.2 million for District businesses.

DISB established and administers DC BizCAP to provide capital to District small businesses and entrepreneurs who continue to encounter reductions in the availability of credit and heightened requirements to obtain financing DC BizCAP provides critical capital through three programs that provide alternatives to traditional commercial financing to facilitate private lending and investments in District small businesses.

The Loan Participation Program (LLP) is a program that provides loan support for small business which may qualify for loans, but are unable to meet capital requirements or the debt service coverage ratio of the lending institution. Under the LPP, the District buys a portion of a loan originated by a lender to reduce the borrower's debt service.

The LPP also provides enhanced loan participation options. In an Enhanced Loan Participation transaction, the District can offer a subsidized interest rate to the borrower and/or subordinate its portion of the loan to the bank if certain economic development goals are met (e.g. the business hiring targets residents and hard to hire; located on a Great Street or in a Low-Income Census Tracts; and is a Certified Business Enterprise (CBE) or minority/woman owned business).

Individuals or businesses should contact a participating lender to start the loan process, or for more information, visit disb.dc.gov/smallbusinfo or contact DISB on (202) 727-8000.

Borrower Eligibility Requirements

  • Non-public company registered in the District and subject to taxation in the District (e.g. a corporation, partnership, joint venture, cooperative, sole proprietorship, District-designated charitable and other non-profit institution)
  • Fewer than 750 existing employees, including subsidiaries and affiliates
  • Principal offices within District (demonstrated by lease or deed)
  • At least 75% of employees, including subsidiaries and affiliates, must work in and provide services in the District
  • At least 25% of W-2 employees are District residents
  • Business owner must provide a personal guaranty
  • Maximum of 50% of commercial loan up to $1 million
  • Principals must not have been convicted of a sex offense against a minor
  • Principals must not have any conflict of interest with the lender, investor or the government
  • For an Enhanced Loan Participation transaction, meet economic development goals

Eligible Lenders

  • Insured Depository Institutions
  • Insured Credit Unions
  • Community Development Financial Institutions (CDFIs)

Currently, there are 14 participating lenders (see list of DC BizCAP Participating Lenders). Additional lenders may apply to participate in the LPP.

Loan funds may be used for the following authorized purposes:

  • Start-up costs
  • Working capital
  • Business procurement
  • Franchise fees
  • Equipment
  • Inventory
  • Purchase, construction, renovation or tenant improvement of commercial real estate
  • Tangible and intangible property (except goodwill)

Loan funds may NOT be used for the following purposes:

  • Speculative activities deriving profits from fluctuations in prices
  • Lending activities (business with more than 50% revenue from lending activity)
  • Pyramid sales
  • Illegal activities
  • Gambling (some lottery exception)
  • Passive investments, including real estate held for sale lease or investment
  • Evangelizing, Proselyting or Lobbying
  • Repayment of Delinquent income taxes
  • Repayment of taxes held in trust or escrow
  • Reimbursement of funds owned to an owner
  • Purchase of ownership interest of an owner
  • Double dipping with other Federal programs
  • Refinancing with the same investor
  • Outside of the District

Financial Institutions Participating in the LLP

Participating Lender
 
Address
 
Website
 
Telephone Number
 
Amalgamated Bank 1825 K St., NW
Washington, DC 20006
amalgamatedbank.com (202) 721-0762
Cardinal Bank 1776 K St., NW
Washington, DC 20006
cardinalbank.com (202) 331-3957
City First Bank of DC 1432 U St., NW
Washington, DC 20009
cityfirstbank.com (202) 243-7113
City First Enterprises 1436 U St., NW
Washington, DC 20009
cfenterprises.org (202) 745-4490
Colombo Bank 1600 East Gude Drive
Rockville, MD 20850
ColomboBank.com (240) 223-1028
Eagle Bank 1425 K St., NW
Washington, DC 20005
eaglebank.corp.com (301) 986-1800
ECDC Enterprise Development
Group
901 S. Highland St.
Arlington, VA 22204
www.entdevgroup.org (703) 685-0510
First National Bank 20300 Seneca Meadows Pkwy.
Germantown, MD
fnb-online.com (202) 815-4478
Industrial Bank 4812 Georgia Ave., NW
Washington, DC 20011
industrial-bank.com (202) 722-2000
Latino Economic Development
Center
641 S St., NW
Washington, DC 20001
ledcmetro.org (202) 588-5102
Revere Bank 820 West Diamond Ave., Suite 110
Gaithersburg, MD 20878
reverebank.com 1(866) 950-5784
United Bank 7845 Wisconsin Ave., NW
Washington, DC 20018
bankwithunited.com (301) 280-7625
Washington Area Community
Investment Fund
2012 Rhode Island Ave., NE
Washington, DC 20018
wacif.org (202) 529-5505
Washington First Bank 1025 Connecticut Ave., NW
Washington, DC 20036
wfbi.com (202) 587-7014