Starting October 1, 2024, will implement several significant legislative initiatives as part of the as part of the Fiscal Year 2025 Budget. These updates aim to streamline operations for local businesses, provide financial relief, and foster entrepreneurship in key areas of the city.
From adjusting Clean Hands requirements to implementing new grant programs, these changes are designed to create a more business-friendly environment in DC.
Here's a summary of the key changes and what they mean for businesses in the District.
1. Changes the Clean Hands Requirements
Starting October 1, 2024, the "clean hands" debt limit threshold for businesses obtaining most licenses or permits will increase from $100 to $1,000. This means businesses can owe up to $1,000 in District taxes, fines, or interest and still meet the "clean hands" requirement. However, this increase doesn't apply to DMV-related debts, such as parking fines, where the threshold remains at $100.
2. Moving Forward on the BEST Act
The Business and Entrepreneurship Support to Thrive (BEST) Act which was funded effective October 1st, allows DLCP to streamline the business licensing categories and to reduce the business license fees. Look for updates about this implementation throughout the year.
Here’s a highlight of some of those changes:
- Making it easier to get a business license by cutting down the number of license types from over 100 to just 10
- Making licenses cheaper: $99 for 2 years or $49 for 6 months. Businesses that make less than $10,000 a year may not have to pay at all
- Setting up a fair system for license renewals where businesses that make more money pay more
- Reducing rules to make the licensing process clearer and simpler; and
- Giving DLCP more freedom to change rules when needed to help DC's growing business community
3. New Grant Programs for Businesses, Including Chinatown
The Fiscal Year 2025 Budget establishes a new Chinatown Long-Term Lease Grant Program for eligible businesses and property owners, starting October 1, 2024. This program is established by the Office of Deputy Mayor for Planning and Economic Development (DMPED). Businesses must be in good standing with DLCP, the District's Office of Tax and Revenue, and the IRS to qualify. Grants will support rent payments and other expenses for Chinatown businesses, boosting the local economy.