About this programme
The Commercial Property Acquisition Fund (CPAF) is a down payment assistance grant from Mayor Bowser and the Office of the Deputy Mayor for Planning and Economic Development (DMPED), in partnership with the DC Council. The District is investing up to $1.5 million in the fund. City First Enterprises (CFE) administers the program day to day.
CPAF is built specifically for equity impact enterprises: resident-owned small businesses that are at least 51% owned by individuals who are economically disadvantaged or who have faced racial or ethnic prejudice or cultural bias. It exists to help those businesses buy commercial property in DC so they can put down roots with a physical presence rather than rent indefinitely.
This is a legal grant program created under the Deputy Mayor for Planning and Economic Development Limited Grant-Making Authority Act of 2012 (D.C. Law 19-168; D.C. Official Code §1-328.04(v)).
How it works
Eligible businesses can receive a grant of up to $500,000 or 25% of the sale price, whichever is less, applied as down payment assistance toward buying commercial property in DC. This is a one-time grant, one application per business, and it is not renewed annually.
The grant window opens March 11, 2026, and funds are awarded on a rolling, first-come-first-served basis until the pool is expended. Applicants must already be in the property acquisition process to be selected: a purchase agreement and a lender pre-approval or term sheet are required at application. The lender must operate in the DC/Maryland/Virginia area with a commercial office there; term sheets from hard money lenders are not accepted.
Applicants must contribute at least 5% of the purchase price at closing for properties up to $1.5 million, and 8% for properties at or above $1.5 million. Applicants currently under contract must not close on the property before funds are disbursed.
The recipient must own and occupy at least 51% of the acquired property's leasable square footage as an equity impact enterprise for at least 7 years. Recipients getting an award over $300,000 must enter a First Source Agreement with DOES, and must meet DSLBD Certified Business Enterprise Subcontracting Requirements.
Conditional award notifications are expected to begin as early as June 2026 for complete applications that don't require additional documents.
Who can apply
The applicant must be an equity impact enterprise (EIE) or eligible to become one: at least 51% owned by individuals who are economically disadvantaged or who have faced racial or ethnic prejudice or cultural bias, at least 51% DC-resident owned, independently owned and operated if a franchise, 100 or fewer employees/subcontractors, and annual revenue under $15 million.
The business must employ at least one DC resident (the owner can count), and must be currently open, operating, and revenue-generating from before October 1, 2025. A permanently or temporarily closed business does not qualify.
The property must be located in DC, zoned for the proposed commercial use, and be an existing building, commercial condo, or mixed-use property with less than 50% residential use; vacant land and residential-zoned properties are excluded.
Applicants may not already own other commercial property in DC (as owner or business), may occupy no more than two existing locations in DC before applying, and may apply for only one property. A valid, active DC Basic Business License valid since at least October 1, 2025 is required, along with a Certificate of Clean Hands obtained within 90 days of applying.
Ineligible business types: banks and financial institutions, collections or speculative-activity businesses, real estate agents/brokers/consultants/developers/investors/lenders, construction companies, non-profits, seasonal businesses (operating only part of the year), and cannabis businesses.
Sole proprietors can qualify, but the owner must be a DC resident; a sole proprietor residing in Maryland, Virginia, or elsewhere does not qualify even with a DC business presence. A business established and operating elsewhere that wants to use CPAF to open a first DC location does not qualify either; it must already be incorporated in DC with an existing location there. An e-commerce business that currently leases warehouse or office space and wants to open a physical storefront is eligible, as long as it doesn't already own commercial property and occupies no more than two existing physical properties.
How to apply
- Confirm your business is open, revenue-generating (with proof of sales if requested), and meets the equity impact enterprise definition.
- Secure a purchase agreement for a qualifying commercial property in DC.
- Obtain a lender pre-approval or term sheet from a lender with a commercial office in DC, Maryland, or Virginia (hard money lenders don't count).
- Get a Certificate of Clean Hands, obtained within 90 days of your application date.
- Submit your application once the window opens March 11, 2026; awards are made on a rolling, first-come-first-served basis until funds run out.
- If selected, you'll receive a notification letter from City First Enterprises outlining next steps, which may include supplying additional documentation.
Documents you’ll typically need
- Purchase agreement for the property
- Lender pre-approval letter or term sheet
- Certificate of Clean Hands (within 90 days of application)
- Active DC Basic Business License
- Proof of sales/revenue, if requested
- Additional financial-fitness documents the District or City First Enterprises may request before selection
Frequently asked
How much can my business receive?
Up to $500,000 or 25% of the down payment cost, whichever is lowest, subject to funding availability.
Can I apply more than once, or reapply next year?
No. This is a one-time grant with one application per business; if you own multiple businesses you can only apply for one of them.
My business opened after October 1, 2025. Can I apply?
No. Only businesses open and revenue-generating before October 1, 2025 are accepted.
I'm a sole proprietor based in Maryland with a DC storefront. Do I qualify?
No. Sole proprietors must themselves be DC residents to meet the equity impact enterprise definition.
Is a Clean Hands Certificate really required?
Yes, a current one obtained within 90 days of your application submission date.
Am I guaranteed a grant if I apply?
No. Applications are accepted on a rolling basis as funding allows, for businesses ready to purchase at the time of application who meet all requirements.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.