Commercial Property Acquisition Fund

The Commercial Property Acquisition Fund is a local government funding initiative established by Mayor Muriel Bowser and the Office of the Deputy Mayor for Planning and Economic Development in partnership with the Council of the District of Columbia. The program is supported through an allocation of up to $1.5 million, subject to FY26 budget availability, and is intended to strengthen long-term commercial ownership opportunities for eligible small businesses operating within the District of Columbia. The fund is administered by City First Enterprises, which serves as the grant administrator and primary contact point for applicants. The purpose of the program is to provide down payment assistance to qualifying District-based businesses seeking to acquire commercial property in Washington, DC in order to maintain or expand their operations through permanent physical ownership rather than leasing arrangements. The grant program offers awards of up to $300,000 or 25% of the commercial property sale price, whichever amount is lower. Funding is intended specifically for acquisition-related down payment support and is not designed to independently cover renovation, buildout, equipment purchases, or startup operational expenses. Applicants must demonstrate that they can secure sufficient additional financing for those supplemental costs if needed. Eligible properties include existing buildings zoned for commercial use, commercial condominiums, and mixed-use properties with less than 50% residential use. Vacant land, undeveloped lots, and residential-only properties are not eligible. Applicants are required to occupy and operate their business in at least 51% of the leasable square footage of the acquired property for a minimum of seven years. Applicants may only apply for assistance related to one commercial property and cannot already own commercial property within the District. Eligibility is restricted to Equity Impact Enterprises or businesses eligible to become certified as Equity Impact Enterprises under District law. This includes resident-owned small businesses that are at least 51% owned by economically disadvantaged individuals or individuals who have experienced racial, ethnic, or cultural bias. Additional requirements include having fewer than 100 employees or subcontractors, annual revenues under $15 million, and at least one District resident employee, which may include the owner. The business must already be operational and revenue-generating prior to October 1, 2025, and must maintain its principal physical office in the District of Columbia. At least 51% of ownership must consist of DC residents. Sole proprietors are eligible only if they are District residents. Businesses operating in more than two District locations, businesses that already own commercial property, and businesses planning to use the purchased property primarily as an investment property are not eligible. Several categories of businesses are specifically excluded from participation in the program. Ineligible applicants include banks and financial institutions, collection service businesses, speculative activity businesses, construction companies, real estate agents, brokers, developers, lenders, nonprofit organizations, cannabis-related businesses, and seasonal businesses that only operate during part of the year. Applicants must possess an active DC business license valid through at least October 1, 2025, and must submit a Clean Hands Certificate issued within 90 days of the application submission date. Additional required materials include an EIN verification document, government-issued identification for each owner, business tax returns for 2022 through 2025 as applicable, monthly profit and loss statements, lender pre-approval documentation or term sheets, and a purchase agreement or seller acceptance letter for the target commercial property. Applications opened on March 11, 2025, and the program operates on a rolling basis until all available funding is exhausted. Awards are made on a first-come, first-served basis to eligible businesses that demonstrate readiness to complete a commercial property acquisition. Completed applications must include all required documentation at the time of submission in order to be considered. Applicants who are selected may be asked to provide additional financial documentation during the review process. Conditional award notifications are anticipated to begin as early as June 2026 for complete applications that do not require additional clarification. Applicants currently under contract for property acquisition may not close on the property before grant funds are disbursed. The application process requires businesses to complete a single application per legal business entity. Applicants are encouraged to save responses externally because City First Enterprises does not provide information technology support for the application portal. The application requests detailed eligibility confirmations, financial qualifications, operational information, and documentation demonstrating both business viability and property acquisition readiness. The fund emphasizes equitable commercial ownership opportunities for historically disadvantaged business owners while also ensuring that applicants possess the financial capacity to sustain ownership and maintain business operations over the long term. Questions regarding the program or application process are directed to City First Enterprises through the official program email address at cpaf@cfenterprises.org.

Applicants should ensure they are fully prepared to purchase commercial property before applying because awards are made on a first come first served basis and applicants must already demonstrate lender support property selection and operational readiness. Businesses should carefully confirm Equity Impact Enterprise eligibility and ensure all required financial documentation is complete before submission.