I would like to address some misconceptions about DC’s Insurance, Securities and Banking Department DC BizCAP Program which may have been created by an October 13 Washington Informer article, “DC-Supported Capital Funding Program Mystifies Black Business Leaders.”
1. The DC BizCAP program is indeed open to all small businesses.The DC BizCAP program is funded by the US Treasury and is fully inclusive and open to all district entrepreneurs and small business owners, regardless of race, who are in need of capital funding. The article incorrectly stated that the DC BizCAP program was created, “to provide capital to black businesses.”
2. DC BizCAP offers subsidized interest rates to small businesses, including minority businesses, certified business ventures, and women. For example, three of the five companies that received funding through DC BizCAP in fiscal 2021 are minority-owned. Since the start of the program in 2011, DISB support has facilitated access to capital of $ 27 million for small businesses in the district, 79% of which are minority-owned. The article suggested the opposite, that the program is little known and therefore underutilized by black business owners.
3. While any funding application process can be time consuming and not all applicants will meet lender requirements, we work closely with program participants to ensure success. It should be clear that DC BizCAP is not a direct loan program. DC BizCAP provides loan enhancements – the ministry can redeem part of the loan, provide additional collateral, or co-invest with lenders. the application process depends on the lenders involved. Our work with program participants does not support the article’s characterization that the program is “labor intensive and time consuming” and other DC government agencies are better resources for capital funding.
While publicizing the DC BizCAP program can be a challenge as a small business owner would intuitively look to the Small Business and Local Business Development Department (DSLBD) for resources, we actively promote the program. new and inventive way. Look for our print and digital advertising of the program and our workshops right here in The Washington Informer, in the Washington Business Journal and on our social media platforms which include Twitter, Facebook and LinkedIn. DISB is also partnering with district agencies such as DSLBD and the Department of Consumer and Regulatory Affairs to promote the program to the business community through awareness events. In fiscal 2021, for example, we hosted 10 workshops and forums attended by over 230 entrepreneurs and small business owners.
For more information about DC BizCAP and how it can help your small business, contact Program Administrator Aaron Fenwick at 202-442-7821 or [email protected] Visit disb.dc.govfor information on upcoming events and workshops.