The DC Collateral Support Program (CSP) helps eligible DC small businesses obtain financing by providing funds to participating lenders to cover collateral shortfalls. DISB may provide up to 50% of the lenders' total financing, up to $1,000,000. Funds are returned to DISB over the life of the loan for use by other businesses.

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 must be District residents
• Business owner must provide a personal guaranty
• Closing and annual fees of up to 4%
• 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

Eligible Lenders

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

Currently, there are 16 participating lenders (see list of DC BizCAP Participating Lenders). Additional lenders may apply to participate in the CSP.

Loan Fund Authorized and Non-Authorized Purposes
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

Financial Institutions Participating in the CSP

For more information on the program, contact (202) 727-8000 or [email protected].