The Loan Participation Program (LPP) is part of the District of Columbia Business Capital Program (DC BizCAP), which is funded by the US Treasury State Small Business Credit Initiative (Initiative). The District of Columbia Department of Insurance, Securities and Banking (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 (LPP) provides capital to small businesses by either purchasing interest in the loans made by lenders or lending alongside private lenders to provide direct lending. In participation with an eligible lender DISB may fund up to fifty percent (50%) of the loan amount but no more than five hundred thousand dollars ($500,000). Participating small businesses are eligible for reduced interest in conjunction with DC BizCAP program support.
DC SBCRE
The Small Business Commercial Real Estate (SBCRE) Loan Program supports eligible District small businesses with loans to fund the renovation, build out or down payment associated with the acquisition or refinance of owner-occupied commercial real estate. The loan is made in partnership with a primary lender that receives repayment priority.
DC SUBL
The StartUp Small Business Loan (DC SUBL) Program supports eligible District small start-up businesses with loans to fund equipment, business operations and working capital needs. The loan is made in partnership with a primary lender that receives repayment priority.
DC SELP
The Space & Equipment Loan Program (SELP) supports eligible District small businesses with loans to fund the acquisition of equipment, space build out and working capital needs. The loan is made in partnership with a primary lender that receives repayment priority.
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 10 participating lenders (see list of DC BizCAP Participating Lenders). Additional lenders may apply to participate in the CSP.
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 LPP
| Participating Lender |
Address |
Website |
Telephone Number |
| City First Bank of DC | 1432 U St., NW Washington, DC 20009 |
cityfirstbank.com | (202) 243-7113 |
| City First Enterprises | 1 Thomas Cir NW Suite 700 Washington, DC 20005 |
(202) 745-4490 | |
| EatsPlace |
3607 Georgia Ave NW, |
eatsplace.com |
(202) 882-EATS (3287) |
| First National Bank | 20300 Seneca Meadows Pkwy. Germantown, MD |
fnb-online.com | (202) 815-4478 |
| Fulton Bank | 820 West Diamond Ave., Suite 110 Gaithersburg, MD 20878 |
fultonbank.com | 1(866) 950-5784 |
| FVCBankcorp, Inc | 1301 9th St., NW Washington, DC 20001 |
fvcbank.com | (202) 628-5500 |
| 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 |
|
Mainstreet Bank |
10089 Fairfax Boulevard |
mstreetbank.com |
(703) 481-4550 |
|
National Community Reinvestment Coalition (NCRC) |
740 15th St NW, |
ncrc.org |
(202) 628-8866 |
|
The Harbor Bank of Maryland |
25 W Fayette St, |
theharborbank.com |
(443) 923-0577 |
| Sandy Spring Bancorp, Inc. | 1299 Pennsylvania Ave., NW Washington, DC 20004 |
sandyspringbank.com | 1(800) 399-5919 |
| 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 |
Additional Resources
- Loan Enrollment Procedures with Document Checklist
- Loan Enrollment Form and Eligibility Questionnaire
- DCCSP Claim Form
- DC BizCAP Quarterly Report/Payment Distribution Summary Transmittal Form
For more information on the program, contact (202) 727-8000 or [email protected].