(Washington, DC) Today, Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Economic Development announced the inaugural awardees of the Commercial Property Acquisition Fund, a program that provides eligible businesses down payment assistance for the acquisition of commercial property in the District. The first two awardees are Tsunami Hair Studio in Ward 7 and The Spice Suite in Ward 4 moving to Ward 5. Through the Commercial Property Acquisition Fund, DC-based businesses that have historically faced barriers to obtaining financing can become commercial property owners. The $4 million investment is part of Mayor Bowser’s efforts to support local businesses and part of her $40 million Legacy Initiative to keep longtime residents and businesses in DC.
“When residents and businesses own property in DC, they stay in DC,” said Mayor Bowser. “Owning property offers stability, it helps business owners think bigger about their businesses, and it is critical tool for helping Black and Brown residents build wealth. With our $40 million package of Legacy Initiatives, we can be more initial about keeping longtime residents and businesses, like LaToya’s, in DC.”
Mayor Bowser highlighted the story of LaToya Liles, owner of Tsunami Hair Studio, who was awarded a $150,000 grant to support the purchase of a building in Ward 7, on Benning Road NE where the studio is located. The funds allowed Liles to close on the property transaction on Friday, March 18, 2022, and allowed her to realize the dream of owning a business and the property. Liles has been in the cosmetology industry for 13 years and has rented the second floor of her building for seven years before she could buy the property. During the pandemic, she used her extra time to learn about loans, grants, and other opportunities as a business owner in the District.
The Spice Suite, owned by Angel Gregorio, was awarded $287,500 in down payment assistance to acquire commercial property in the Langdon neighborhood. Ten other businesses have received conditional awards totaling nearly $4 million in funding and are expected to close on a commercial property this spring.
The Commercial Property Acquisition Fund is the first grant program in the District of Columbia created to help entrepreneurs and small business owners who face barriers to accessing capital to purchase their commercial properties. The fund provides down payment assistance through grants up to $750,000 or 25% of the total acquisition cost, whichever is lower, to eligible businesses looking to maintain and expand their operations by acquiring commercial property in DC. The District has partnered with City First Enterprises, a local U.S. Treasury designated Community Development Financial Institution (CDFI) to oversee and manage the Fund.
Qualified businesses must be Equity Impact Enterprise-eligible, meaning that they satisfy the criteria for Resident-Owned Business, Small Business Enterprise, and Disadvantaged Business Enterprise. The business must also be independently owned, have no more than 100 employees at application submission, and generate less than $15 million in revenue.
“Mayor Bowser has challenged us to find new ways to support BIPOC …….