SMALL BUSINESS LENDERS
When choosing a lender, it is important that you feel comfortable with both the loan officer and the bank itself. Many banks specialize in particular types of business financing. Others have restrictions on the types of business that they will loan to. Don’t be afraid to ask questions or shop your loan application to different banks at the same time.
Below are few lenders in DC. For a list of federally insured financial institutions in DC, please visit www.dbfi.dc.gov and click on "Banks Located in DC."
| (202) 835-9220 |
| (202) 408-5594 |
| (202) 722-2000 |
| (301) 208-7249 |
Equity Financing & Other Sources Of Income
Other financing options include venture capital funds, angel investors and small business investment companies. The District Government’s new CAPCO program is also an primarily equity financing source for small businesses.
Certified Capital Company (CAPCO)
The DC Certified Capital Company (CAPCO) Investment Program was proposed by Mayor Williams and enacted in 2004 by DC Council to support local small businesses and to retain, expand and attract business to DC. Through CAPCO, insurance companies are provided a DC tax credit against their premium taxes in exchange for making available $50 million in long-term equity (and debt) for new or expanding small businesses based in DC. There are three initial funds managed by professional venture capitalists, who will consider investments in a wide range of small and emerging businesses, including retail outlets, service companies, manufacturing centers, distribution channels, technology companies, and transportation providers.
Advantage Capital Partners is an example of a Certified Capital Company. For a complete listing please go to www.disb.dc.gov.
Companies interested in applying for CAPCO investment must meet the following requirements:
- Capital Needs of $100,000 or more;
- Headquartered in the District of Columbia;
- 75% of the employees must work in the District;
- 25% of the employees must reside within the District; and
- The business also must qualify SBA's requirements for SBA loan applicants.
Each business that applies for a loan or equity from a CAPCO must fill out the Qualified Business Application. Please contact DC's Department of Insurance, Securities and Banking's (DISB) Risk Finance Bureau at (202) 727-5074 for more information, or visit the DISB website at www.disb.dc.gov and click on "Certified Capital Companies (CAPCO) Information."
Venture Capital
Venture Capital firms (VCs) generally require some management control (in addition to repayment) in exchange for their financial investment. An advantage to using a VC is that they may also bring expertise and experience that your business does not currently have.
To obtain a listing of area VCs, you may visit the web site of the Mid-Atlantic Venture Association (MAVA) which allows you to search for venture companies that fit your criteria of industries and/or locations. MAVA can also be reached at (410) 560-5855.
Small Business Investment Companies (SBICs)
SBICs are licensed and regulated by the SBA and are investment firms that make capital available to small businesses through investments or loans. They also provide management assistance and expect a share of the profits from your business. Below are some of the area's SBICs:
Allied Capital Corporation | (202) 337-1112 |
Broadcast Capital, Inc. | (202) 496-9250 |
Core Capital Partners, LP | (202) 589-0090 |
Grosvenor Special Ventures, LP | (202) 861-5650 |
Tax-Exempt Bond
Revenue Bond financing is an attractive source of funding for businesses and non-profit organizations that locate or operate within the federally designated Enterprise Zones. A qualified private business can borrow up to $15 million of tax-exempt bonds to invest in buildings, equipment, and furnishings used for the qualified business. Besides being tax-exempt, the bond financing is usually at least two percentage points below market interest rates. A non-profit organization is not bound by its location as long as it is within the District of Columbia and may borrow as much as it needs. Please see our section on Financial Incentives for eligibility requirements. 
