(Washington, DC) – Today, Mayor Muriel Bowser announced that the District is approved to receive $62 million from the U.S. Department of the Treasury to provide small businesses with capital that will help them start their business, expand their business, and help with administrative costs. This American Rescue Plan funding falls under the State Small Business Credit Initiative (SSBCI), and DC’s first portion, $19 million, is now available to the DC Department of Insurance, Securities and Banking (DISB).
“Small businesses are so important for the vibrancy of our city. Not only do our small businesses represent the dreams and creativity of Washingtonians, they also create jobs for DC residents and support thriving commercial corridors in neighborhoods across the city,” said Mayor Bowser. “Whether it is through these investments in small business or other investments in infrastructure or resiliency, President Biden’s Investing in America Agenda is building stronger communities and giving more people a fair shot.”
DISB’s $19 million in SSBCI funding will be administered through its DC Business Capital Access Program (DCBizCAP). This program links District small businesses that are creditworthy but not securing loans from traditional lending sources with access to capital. The funding that local businesses receive through the DCBizCAP program can be used for start-up costs to launch a business, to acquire or refinance owner-occupied commercial real estate, or to make leasehold improvements for business usage, financing equipment, and more. For more information on DCBizCAP, visit disb.dc.gov/smallbusiness.
“We are confident that the SSBCI funding will continue to be a driving force for small businesses that need loans and investments and fulfill the Bowser Administration’s goals for broad-based economic development,” said DISB Commissioner Karima Woods. “This partnership with the Treasury Department has been a rewarding one, allowing District small businesses to move to new facilities, hire and retain employees, and purchase the equipment they need to start or expand.”
The Office of the Deputy Mayor for Planning and Economic Development (DMPED) will partner with DISB to launch a DC Venture Capital Program using available SSBCI funding. The DC Venture Capital Program will aim to provide equity seed capital for early-stage DC-based businesses, with a focus on underserved founders of technology and “tech-enabled” companies. For more information on DMPED’s Venture Capital Program, visit tinyurl.com/DMPEDVentureCapital.
DMPED also has an Inclusive Innovation Equity Impact Fund, which similarly aims to level the playing field for entrepreneurs who seldom receive early-stage funding through conventional financing. Mayor Bowser has invested $4 million in the Inclusive Innovation Equity Impact Fund since it launched in Fiscal Year 2021, and applications are currently being accepted for the fund. For more information, visit obviouslydc.com.
“We are grateful to the Biden Administration for providing a new source of venture capital for DC-based entrepreneurs, particularly those who historically have not had equal or fair access to capital,” said Acting DMPED Deputy Mayor Nina Albert. “The District is proud to have a strong innovation ecosystem, and we look forward to building on that foundation by helping ensure more technology and tech-enabled based start-ups can grow and thrive here in DC.”
President Obama created SSBCI by signing into law the Small Business Jobs Act (SBJA) on September 27, 2010. As enacted, the Treasury Department awards up to $1.5 billion to fund state and local programs across the country that support small businesses including small manufacturers. Under President Biden, the American Rescue Plan reauthorized and amended the SBJA to provide an additional $10 billion to fund the SSBCI as a response to the economic effects of the COVID-19 pandemic.
To learn more about SSBCI and the U.S. Treasury Department’s other small business programs, visit treasury.gov/smallbusiness.