Section 27-850. STREETSCAPE LOAN RELIEF FUND

850.1 The Department shall implement and administer the Streetscape Loan Relief  Fund (Streetscape Fund) established pursuant to section 603 of the Streetscape Fund Amendment Act of 2010 (Act), effective April 8, 2011 (D.C. Law 18-370; D.C. Official Code §§ 1-325.191, et seq.) (2011 Supp.)).  The Streetscape Fund is funded by annual appropriations to provide interest-free loans to any individual or entity that operates a retail business inside or adjoining a streetscape construction or rehabilitation project.   

850.2 Loans issued from the Streetscape Fund shall be made in the sole discretion of the Department.  The term “loan” includes a senior or subordinated secured or unsecured loan or a loan guarantee.  The term of a loan under this section shall not exceed five (5) years after the termination of the streetscape construction or rehabilitation project.  The Department may, in its discretion, outsource the loan underwriting process to a qualified non-profit organization or financial institution. 

850.3 To be eligible for a loan from the Streetscape Fund a recipient must:

 

(a) Be independently owned, operated, and controlled;

 

(b) Be licensed to operate the impacted retail business with the Department of Consumer and Regulatory Affairs;

 (c) Be in good standing with the Department of Consumer and Regulatory    Affairs;

       (d) Have a Certificate of Clean Hands from the Office of Tax and Revenue or state that the loan will be used to pay back taxes due the Office of Tax and Revenue, and if a loan is granted for this purpose, direct the loan amount be paid directly to the Office of Tax and Revenue on behalf of the borrower; and

       (e) Demonstrate financial hardship or debt resulting from, or accumulated during, the streetscape construction or rehabilitation in the District.

850.4  The following are ineligible to receive funding from the Streetscape Fund:

 (a)  Street vendors; and

 (b)  Regional or national franchise businesses.

850.5 The Department shall give preference for loans to: (i) eligible recipients that are certified pursuant to the Act as a Small Business Enterprise or Disadvantage Business Enterprise or Resident Owned Business; and (ii) eligible recipients that serve or whose principal office is located in a DC Main Streets corridor, a Neighborhood Investment Program Target Area, or another area identified by the Mayor for economic development or commercial revitalization.  The preference may be in the form of higher loan amounts or such other form as the Department may determine, in its discretion, best serves the goals and purposes of the Streetscape Fund.  The Department shall maintain and make available a list of such eligible target areas. 

850.6 An eligible recipient may use loan proceeds from the Streetscape Fund for the   following purposes:

 (a) Working capital;

 (b)  Inventory;

 (c) Repair of furniture, fixtures, machinery, or equipment;

 (d) Contract cash flow assistance;

 (e) Pay taxes due the Office of Tax and Revenue; 

      (f)  Pay overdue rent for lease of retail business space affected by the streetscape  construction or rehabilitation project;

      (g) Pay overdue mortgage of retail business space affected by the streetscape construction or rehabilitation project;

      (h) Pay other substantiated financial debt affecting the retail business derived from the streetscape construction or rehabilitation project; and

      (i) Pay any fees or costs that may be assessed associated with the loan process under this section.

850.7 The Department shall develop underwriting criteria and terms for loans issued from the Streetscape Fund.  Such criteria shall include, at minimum:

(a)   The maximum funding amount(s);

(b)  Term limits;

(c)   Security or collateral requirements; and

(d)  Any fees and costs that may be assessed for processing the loan. 

850.8 The Department shall include the underwriting criteria with the application and/or publish the underwriting criteria on its website.  The Department may modify the underwriting criteria as necessary to account for changes in budgeted amounts of the Streetscape Fund or changing needs of the local business community.  The Department may work with a qualified non-profit organization and/or financial institution to develop and/or modify as necessary the underwriting criteria.

850.9 An eligible recipient seeking funding from the Streetscape Fund shall submit a written application to the Department on such form or forms as may be prescribed by the Department.  The application shall include, at a minimum, submission of the following documents and information:

     (a)        Clean Hands Certification from the Office of Tax and Revenue or statement that the loan sought will be used to pay outstanding taxes owed the Office of Tax and Revenue together with tax bills;

     (b)  Certificate of Good Standing and license to operate the retail business from the Department of Consumer and Regulatory Affairs;

     (c) Financial status of the applicant including, but not limited to, tax returns, balance sheet(s), and profit and loss statements;

     (d)  Amount of funding from the Streetscape Fund requested by the applicant;

     (e)  Reason for requesting funding from the Streetscape Fund; and

     (f)  Any other information or documents the Department may require in order to assess the applicant’s eligibility and/or credit worthiness.

850.10 The Department, and/or any qualified non-profit organization or financial institution to which the Department has outsourced the underwriting process, shall review and evaluate an application for funding from the Streetscape Fund for completeness, underwriting analysis, and funding determination.  Incomplete applications shall be returned to the applicant.

 

850.11 Within sixty (60) days of receipt of a complete application, the Department or its non-profit or financial institution partner shall notify the applicant whether the funding request has been approved, denied, or if additional information is needed to make a determination.  If an application is denied, the Department or its non-profit or financial institution partner shall provide the applicant with an explanation of the underwriting determination.

 

authority

The Acting Director of the Department of Small and Local Business Development (Director), pursuant to the authority set forth in section 603(d) of the Streetscape Fund Amendment Act of 2010 (Act), effective April 8, 2011 (D.C. Law 18-370; D.C. Official Code § 1-325.191(d)(2011 Supp.)) and the Mayor’s Order 2011-128, effective July 29, 2011.

source

Notice of Emergency and Proposed Rulemaking published at 58 DCR 7320 (August 12, 2011)[EXPIRED]; as amended by Notice of Final Rulemaking published at 58 DCR 8782 (October 14, 2011).