714.1 Small goods and services businesses are an important part of what makes the District's neighborhood commercial areas work. They provide full- and part-time employment opportunities for Washington, DC residents and contribute to the District's tax base. They help sustain the diversity of neighborhood shopping areas and enable the marketplace to respond to changing business conditions and consumer preferences. Washington, DC's small business proprietors have initiated many of the District's commercial revitalization efforts, driven by a desire and commitment to upgrade their businesses, properties, and neighborhoods.

714.2 Approximately 98 percent of the businesses in the District had fewer than 500 employees in 2015. These businesses represented 47 percent of the District's private-sector jobs and they are an essential part of its economic base. Sectors with high numbers of small businesses include construction, wholesale trade, retail trade, and food services. In fact, the average retail business in the District has about 12 employees, and the average food service business has 22 employees.

714.3 The success of small businesses in these sectors and others is particularly important in Washington, DC's underserved or underfunded communities. Small businesses in these areas can catalyze neighborhood renewal and provide local jobs. The availability of working capital and other forms of financial and technical assistance is important to promote their success.

714.4 One of the potential downsides of revitalization is the loss of small businesses as the cost of retail space increases beyond what many business models can support in the face of growing demand from new types of businesses, such as fast-casual restaurants that generate particularly high levels of revenue. This can result in the replacement of basic services with specialty retail and dining that is not affordable to as many residents. The District recognizes that neighborhood shopping areas should evolve in response to changes in consumer tastes and preferences, but it also recognizes the importance of avoiding displacement and economic hardship for the businesses that have anchored Washington, DC's shopping areas for years.

714.5 New programs may be needed to increase opportunities for residents to own businesses in thriving commercial areas. Measures could include income and property tax incentives, assistance to commercial tenants seeking to purchase their buildings, commercial land trusts (which buy local commercial space and hold it in perpetuity for the benefit of the community), and relocation assistance programs for displaced businesses. Zoning strategies, such as development incentives to preserve local-serving small businesses, should be considered. There are also federal programs like the Historically Underutilized Business Zone (HUBZone) and Small Business Administration (SBA) loans that can support local entrepreneurs. In addition, entrepreneurship training programs can help

residents develop successful enterprises that have forward-looking business models that can become the next generation of local businesses that anchor communities.

714.5a Text Box: Employee-Owned and Controlled Businesses Employee-owned and controlled businesses, such as worker cooperatives, are one form of small business ownership that produces an array of economic benefits for low-income communities that can effectively reduce economic disparities on a long-term basis. Employee-owned and controlled businesses tend to provide higher wages, more opportunities for skill development, greater job stability, and better benefits. This type of business is a proven community development practice that can help build economic equity by promoting living wages and reducing income inequality.714.5b Promoting employee-owned and controlled businesses is an opportunity to build community wealth and support workforce development in concert with other programs to continue building an inclusive District. Connecting prospective employee-owned and controlled businesses with small business financing programs can improve the successful creation, implementation, and expansion of worker cooperatives.714.6 Policy ED-3.2.1: Small Business Retention and Growth Encourage the retention, development, and growth of small and minority businesses through a range of District-sponsored promotion programs, such as Made in DC and 202 Creates, as well as through technical and financial assistance programs.714.7 Policy ED-3.2.2: Small Business Incubators Support small business incubators that provide space for lease to small and emerging businesses at low cost with flexible terms, paired with business development advisory services. Encourage entrepreneurship and workforce development in maker industries, particularly for businesses of color.714.8 Policy ED-3.2.3: Access to Capital Expand access to equity, debt capital (including small business loans and lines of credit), long-term debt financing, and grants for small and medium businesses to support new and expanded business ventures. These tools should be used to leverage private investment in facility improvements, streetscape improvements, and other investments that help revitalize commercial districts and generate local jobs.714.9 Policy ED-3.2.4: Partnerships with Major Employers Promote collaborations and partnerships between small businesses and the District's major employers to increase contracts for small and disadvantaged

businesses (including federal outsourcing contracts), create new training opportunities, leverage corporate social responsibility initiatives, or otherwise collaborate on inclusive economic growth initiatives.

714.10 Policy ED-3.2.5: Innovation in Emerging Cross-Cutting Industry Clusters Support ongoing efforts by the District's colleges and universities to promote innovation in emerging fields. Provide technical and financial assistance to help local entrepreneurs and small businesses with an emphasis on the impact economy, smart cities, professional services innovation, hospitality innovation, security technology, and data science and analytics. These efforts should include small business clinics, incubators, and course offerings at institutions of higher education. These efforts should emphasize opportunities to serve women, communities of color, and low-income residents. 714.11 Policy ED-3.2.6: Commercial Displacement Avoid displacement of small, minority, and local businesses due to rising real estate costs. Develop programs to offset the impacts of rising operating expenses on small businesses in areas of rapidly rising rents and prices. Also consider enhanced technical support that helps long-standing businesses grow their revenues and thrive in the strengthening retail economy. 714.12 Policy ED-3.2.7: Assistance to Displaced Businesses While avoiding displacement where possible, assist small, minority, and local businesses that are displaced as a result of rising land costs and rents, government action, or new development. Efforts should be made to find locations for such businesses within redeveloping areas, or on other suitable sites within the District. 714.13 Policy ED-3.2.8: Certified Business Enterprise Programs Expand opportunities for local, small, and disadvantaged business enterprises through programs, incentives, contracting requirements, and other activities. 714.13a Text Box: Small and Minority Businesses Minority business enterprises represent an important subset of small businesses in Washington, DC. Their growth and expansion remain a particularly high economic development priority, and efforts should continue to streamline processes and provide innovative assistance. The DC Business Center is a one-stop online center to streamline regulatory information and make payments. The DC Business Center and DSLBD's Center for Entrepreneurial Education and Development provide unified information from key agencies, including the Department of Consumer and Regulatory Affairs (DCRA) and the Alcoholic Beverage Regulation Administration (ABRA). 714.14 Policy ED-3.2.9: Employee-Owned and Controlled Businesses

Support the creation and advancement of employee-owned and controlled businesses. Consider techniques such as public funding to support the formation of cooperatives, prioritizing worker cooperatives in competitive contracting and procurement opportunities, aligning preferences for cooperatives with workforce and economic development initiatives, training partnerships with workforce development programs, and providing technical assistance, including financial and legal services.

714.15 Policy ED-3.2.10: Local Business Operational Planning Promote the development of business operational plans to assess and build capacity of local businesses to prepare for, withstand, operate, and recover from identified threats and risks. The intent of business continuity plans is to implement safeguards and procedures that minimize disruptions during and after disasters, and to eliminate threats that can jeopardize the financial solvency of the small business.714.16 Policy ED-3.2.11: Small Business Capacity Building Promote capacity building for small businesses, including equity impact enterprises, that expand awareness of financial management, strategic planning, inventory management, legal requirements and risk management, and proven marketing techniques. Expanding awareness of these techniques will help small, minority, and local businesses grow along with the District's economy.714.17 Action ED-3.2.A: Anti-Displacement Strategies Complete an analysis of alternative regulatory and financial measures to mitigate the impacts of demographic and economic market changes on small, minority, and local businesses. Measures to be assessed should include, but not be limited to, technical assistance, building purchase assistance, income and property tax incentives, historic tax credits, direct financial assistance, commercial land trusts, relocation assistance programs, and zoning strategies, such as maximum floor area allowances for particular commercial activities.714.18 Action ED-3.2.B: Business Incentives Use a range of financial incentive programs to promote the success of new and existing businesses, including HUBZones, the Inclusive Innovation Fund, Certified Business Enterprise set-asides, loans, loan guarantees, low-interest revenue bonds, federal tax credits for hiring District residents, and tax increment bond financing.714.19 Action ED-3.2.C: Temporary Retail Support temporary retail opportunities that would enable entrepreneurs and small businesses to open a shop in vacant commercial space at reduced costs.714.20 Action ED-3.2.D: Small Business Needs Assessment

Conduct an assessment of small and minority business needs and impact evaluations of existing small business programs in the District. The assessment should include recommendations to improve existing small business programs and developing new, performance-based programs as needed.

714.21

Action ED-3.2.E: Neighborhood Commercial District Resilience Toolkit

Create a toolkit that builds on the Vibrant Retail Streets Toolkit to provide community-based economic development organizations tools to navigate changing markets. The toolkit will help organizations identify and leverage public space assets, build market strength, apply creative placemaking, and implement temporary uses.

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Action ED-3.2.F: Study Employee-Owned and Controlled Businesses

Evaluate employee-owned and controlled businesses' potential for inclusive economic growth. Research could include identifying successful programs and assessing the feasibility of support for employee-owned and controlled businesses through startup funding, technical assistance, and legal support.

SOURCE: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR 1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996 effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996 effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58 DCR 908 (February 4, 2011)); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).