Washington, D.C. – Today, Mayor Muriel Bowser announced that the District of Columbia has secured an additional $4.4 million from the US Treasury State Small Business Credit Initiative (SSBCI) to finance three programs created by the District of Columbia that support small and local businesses. Consumers are also encouraged to #ShopSmall #ShopDC on Saturday, November 26, as part of Small Business Saturday, a shopping holiday created for small businesses.
Under SSBCI, the District uses federal funds to facilitate private financing to local small businesses that are creditworthy, but are not getting the capital they need to expand or create jobs. To date, the District's SSBCI program, administered by the District’s Department of Insurance, Securities and Banking (DISB), has used $8.7 million in federal funds to leverage $17 million in private financing that supported 28 small businesses in the District. The program is estimated to have created or retained approximately 360 jobs.
"Small businesses are the backbone of our economy and it is important that we provide District entrepreneurs with the tools they need to help their businesses flourish," said Mayor Bowser. "The financial support we received from the federal government gives us an opportunity to continue to invest in our city as we work to break down financial barriers for our small businesses."
The $4.4 million announced today is the third disbursement of the total $13.1 million in SSBCI funds for the District since 2014. The additional funds will continue to support three District programs, collectively referred to as DC BizCAP:
- Collateral Support Program: provides capital to small businesses with insufficient collateral in the form of cash collateral deposited with participating lenders.
- Loan Participation Program: provides loan support in the form of loan buy-down and/or interest rate subsidies for small business borrowers who may be qualified for loans, but are unable to meet capital requirements or the debt service coverage ratio of the lending institution.
- Innovation Finance Program: is a venture capital type program that provides capital to investors that co-invest with the District in start-up and emerging companies that seek financing alternatives to traditional commercial lending.
Through the Innovation Finance Fund Program, the District recently announced a $100,000 investment in the new fast casual Indian food business Rasa Indian Grill, fast casual restaurant concept created by business partners Rahul Vinod and Sahil Rahman with the mission of making Indian cuisine and culture accessible to all. Rasa will open its first store next summer at 1277 First Street SE in Navy Yard.
"Obtaining financing can often be the hurdle that stops an innovative idea from becoming a reality. With these additional funds, we can give small businesses a chance to make their dream work, thus creating jobs and strengthening our local economy," said DISB Commissioner Stephen C. Taylor.
SSBCI was created when President Obama signed into law the Small Business Jobs Act on September 27, 2010. Under the program, the Treasury Department awarded $1.5 billion to fund state and local programs across the country that support small businesses, including small manufacturers.
To learn more about #ShopSmall #ShopDC, go to http://dslbd.dc.gov/shopdc. For more on the DC programs, follow this link at disb.dc.gov/smallbusinfo on DISB's website. For more information on SSBCI and the US Treasury Department's other small business programs, please visit www.treasury.gov/smallbusiness.