Micro Loan Emergency Expansion Passes Council

WASHINGTON – Today, At-Large Councilmember Kwame R. Brown thanked his colleagues for passing emergency legislation to expand access to the District’s micro loan program.  More local businesses can qualify for low-interest loans up to $25,000 from a pot of over $200,000.  Councilmember Brown has been fighting for increased capital and access to the micro loan fund since he created the program two years ago.

“We need to focus on spurring the economy and increasing access to business capital,” said Councilmember Brown.  “Having a diverse range of investment opportunities provides businesses with the best chance for success.  I’m going to continue to urge that we place more dollars into the program and get the word out to businesses as quickly as possible.”

The “Small Business Micro Loan Fund Package” amends the law to expand eligibility for the District’s micro loan program.  The fund is managed by the Department of Small and Local Business Development.  Most local small or local disadvantaged businesses are eligible for loans up to $15,000.  Businesses located in Neighborhood Investment Fund areas or those on a DC Main Street may qualify for loans up to $25,000.

This year, Councilmember Brown has introduced a combination of legislation to address the plight of small businesses in the District.  The “Neighborhood Commercial Corridor Tax Relief Strategy Act of 2009,” co-introduced by At-Large Councilmember Phil Mendelson and Ward 6 Councilmember Tommy Wells, requires the Mayor to create a long-term tax relief strategy for businesses located in neighborhoods with transportation infrastructure construction such as H Street.

Last week, Councilmember Brown also introduced the “Community Bank Liquidity Access Pilot Program Act of 2009,” which is a pilot program that allows the Chief Financial Officer to place funds into the CBLA for deposit in local banks.  Participating local banks can then use the funds to loan to local businesses on a $2 to $1 ratio.  Banks must prove that a minimum of 25% of their loans have gone to District residents and businesses in order to qualify.

For more information or to interview Councilmember Brown, please contact Press Secretary Michael Price at 202-445-4510 or mprice@dccouncil.us.

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