Eligibility
Qualified Enterprise Zone businesses, manufacturers and 501(c)(3) organizations (non-profit) are eligible for tax-exempt bond financing. Businesses located in the District of Columbia Enterprise Zone may borrow up to $15 million. Manufacturers located outside the Enterprise Zone each are eligible for up to $10 million of revenue bond financing, and 501(c)(3) Organizations may borrow an unlimited amount.

Eligibility Requirements
Eligible applicants are expected to meet the following requirements:

• Creditworthiness standards;
• Own or have legal control over a proposed development site;
• Funded projects are expected to contribute to the health, education, safety, creation and/or preservation of jobs for District’s residents, as well as to the economic development of the District; and
• Applicants must complete, execute and deliver to the District, good faith agreement regarding:
  1. Employment of the District residents (First Source Employment Agreement); and
  2. Engagement of businesses certified by the Local Business Opportunity Commission for contracting and sub-contracting opportunities (Memorandum of Understanding).

Scope and Authority
The Department of Small and Local Business Development (DSLBD) is charged with the responsibility for monitoring Revenue Bond program established pursuant to DC. Law 1-95 (as amended), DC Code Section 2-215.03 et seg. (2001 Ed). The program commits Bond Applicants to use best efforts to contract and/or subcontract with certified Certified Business Enterprises (CBEs) for procurement equal to the amount representing 35 percent of the adjusted proceeds of the bond issue (the “35% Goal”).

DSLBD Monitoring Objectives
The Department of Small and Local Business Development Monitoring Program is designed to achieve two major objectives: (1) to promote growth and expansion of certified local businesses in the District, and (2) to strive for greater participation of local businesses in both public and private sector projects. The program also seeks to achieve the following:

• Expansion of economic opportunities for local community at-large;
• Encourage redevelopment in areas for which qualified redevelopment bonds may be used;
• A growing and balanced economy in the District-based industry of trade and commerce;
• Increase in the District tax base; and
• Increasing employment of the citizens and residents of the District.

The Department of Small and Local Business Development relies on the use of Memorandum of Understanding (MOU) as a monitoring instrument for the revenue bond program. The MOU is a public/private partnership agreement. The MOU commits bond applicant to utilize Certified Business Enterprises (CBEs) for procurement equal to an amount representing 35 percent (35%) of the adjusted bond proceeds of the bond issue.

Revenue Bond Monitoring Requirements
The Department of Small and Local Business Development (DSLBD) revenue bond monitoring requirements are specified in the Memorandum of Understanding (MOU) agreement. The MOU requires bond applicants to do the following:

• Submit a procurement plan to DSLBD for all new construction and renovation projects detailing Certified Business Enterprises (CBEs) participation in each trade;
• Submit a yearly procurement plan to DSLBD for small and large purchases of goods and services and supplies, professional services, construction and renovation projects (including but not limited to purchases of new furniture and fixtures, equipment, general maintenance, security, janitorial, refuse collection). The plan shall outline CBEs participation in each procurement category; and
• Submit quarterly CBE contracting and subcontracting reports to DSLBD no later than fifteen (15) days after the end of each calendar quarter.

Bond applicants are required, as set forth in the Memorandum of Understanding, to submit to the “Director” quarterly CBE contracting and subcontracting expenditure reports no later than fifteen (15) days after the end of each calendar quarter. The reports are to be submitted on the DSLBD (Attachment B) form. In addition, the reports are to include documentation of outreach efforts by the applicant to solicit CBEs for procurement opportunities. The reporting requirements are to continue until the applicant’s 35 percent required goal (the “35 percent Goal”) has been achieved.