The Loan Participation Program (LPP) helps eligible DC small businesses access capital by purchasing a portion of a lender's loan or lending alongside a private lender. DISB may provide up to 50% of the lender's total financing, not to exceed $1,000,000. Participating small businesses are eligible for reduced interest in conjunction with DC BizCAP program support.

Small Business Commercial Real Estate (SBCRE): The DC SBCRE Loan Program supports eligible DC small businesses with loans to fund the renovation, build out, down payment, acquisition and in certain instance refinance owner-occupied commercial real estate. The loan is made in partnership with a primary lender that receives repayment priority.

• Maximum Support Amount: $1,000,000
• Loan Terms: Maximum of 84 months (max amortization of 25 years)
• Interest Rate: Maximum of 2%
• Settlement Fee: 2% Support Amount

StartUp Small Business Loan (SUSBL): The DC SUBL Program supports eligible District small start-up businesses with capital to fund equipment, business operations and working capital needs. The loan is made in partnership with a primary lender that receives repayment priority.

• Maximum Support Amount: $1,000,000
• Loan Terms: Maximum of 60 months
• Interest Rate: Maximum of 2%
• Settlement Fee: 2% Support Amount

Space and Equipment Business Loan (SELP): The DC SELP supports eligible District small businesses with capital 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.

• Maximum Support Amount: $500,000
• Loan Terms: Maximum of 72 months
• Interest Rate: Maximum of 2%
• Settlement Fee: 2% Support Amount

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 LPP.

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 LPP

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