FY2027 Budget Oversight Hearing for DSLBD - April 30, 2026

The Subcommittee on Local Business Development held a budget oversight hearing on the proposed Fiscal Year 2027 budget for the Department of Small and Local Business Development (DSLBD). Chairperson Felder presided over the hearing, which began at 12:07 PM in Room 120 of the John A. Wilson Building. The hearing featured testimony from public witnesses, including Main Street directors, ANC commissioners, business owners, and community advocates, followed by testimony from DSLBD Director Rosemary Suggs Evans. Key topics included Main Street funding, clean teams, the Certified Business Enterprise (CBE) program, and the need for equitable resource distribution across wards.

Public Comments & Testimony

• Alexander Padro, Executive Director of Shaw Main Street, stated that Shaw welcomed nearly 5.3 million unique visitors in 2025, making it the second most visited Main Street in the U.S. and first in D.C. He noted that baseline funding allows operations, but additional resources could expand clean teams and grants. He cited a national average return of $3 for every $1 invested in Main Streets.
• Noah Gitz, Executive Director of Tenleytown Main Street, testified about a $5,000 grant that enabled a print shop (PrintSpace) to purchase a specialized cutter, revolutionizing its turnaround time and profitability. He requested continued funding for the council enhancement to provide consistency.
• Cassandra Heatherington, representing Cleveland Park Main Street, described how growth fund grants funded awnings, benches, and gardening beds. She stated that a business owner noted the awning made the promenade look appealing and inviting, and that a freezer replacement grant provided huge relief during a slow period.
• Kelsey Adams, U Street Main Street Manager, emphasized that events like Juneteenth and Art All Night are economic engines. She noted confusion around the FY26 budget and called for maintaining an enhancement of approximately $18,000 per Main Street (system-wide $522,000). She also flagged that Art All Night funding was slashed by about a third in the prior year.
• Heather Gustafson, Palisades Main Street, recounted how the Main Street intervened when the Palisades Plaza owner abandoned the building in July 2024, leaving 15 tenants without services. She said the Main Street prevented closure and, through a growth fund grant, supported a local grocer’s expansion to address a food desert.
• Rachel Shank, Georgetown Main Street Executive Director, reported that in FY25 the program supported over 200 businesses, hosted 33,000 event attendees, and logged 1,225 volunteer hours. She highlighted the "Stick Around Georgetown" program, which helped five businesses successfully renew or rework leases using 50 hours of consultation.
• Ann Blackwell, Historic Dupont Circle Main Streets Executive Director, urged the council to view Main Streets as "placekeepers" preserving cultural history. She highlighted DuPont Circle’s over 50 legacy businesses and the importance of subgrants for outdoor seating design.
• Jeremy Sherman, ANC 1A04 Commissioner and ANC1A Chair, stated that Columbia Heights has over 15 vacant storefronts and the Main Street program (covering three corridors) is under-resourced with one staff person and one budget. He renewed a call for a dedicated, independent Main Street for Columbia Heights, separate from Mount Pleasant.
• Anthony Thomas Davis, ANC 1A06 Commissioner, called for better accountability from Main Streets, noting that no public reports are available on the DSLBD website. He argued that the Columbia Heights/Mount Pleasant Main Street has failed small businesses by taking on too many non-economic development activities. He also urged more resources for clean teams.
• Patrick Powell, Chief of Staff of the Golden Triangle BID, expressed strong support for the Golden Triangle Business Improvement District Amendment Act of 2026, which would clarify that the BID has authority to increase its tax rate by 3% annually. He said rising costs for labor and supplies make this modest adjustment necessary.
• Chinati Hubbard, President and CEO of the DC Chamber of Commerce, urged preservation of DSLBD funding, describing small businesses as a powerful driver of overall economic growth. He highlighted the Chamber’s partnership with DSLBD on awards, summits, and the State of the Business report.
• Margaret Marsh, owner of Healing Hands Physical Therapy Services (a Ward 8 CBE), described how DSLBD helped stabilize her tenancy after a cancer diagnosis and staff loss. She requested continued funding for DSLBD and sister development corporations to prevent businesses like hers from disappearing.
• Maggie Winters, co-founder of a creative agency, suggested a vacant storefront activation pilot with small grants, a short-term lease template, and permitting help to turn empty spaces into community assets.
• Kay Larios, board member of SECOSOL and DC Community Wealth Builders, requested a technical assistance grant for cooperative development, emphasizing that immigrant women lack resources in their languages and budgets.
• Amani Morrison, Ward 4 resident and DC Community Wealth Builders volunteer, asked the council to create a cooperative conversions grant and tax incentive to help businesses sell to employees instead of closing, citing shuttered local businesses.
• Jim Schulman, Executive Director of the Alliance for Regional Cooperation, stated that 60–80 cents of every dollar spent at a local independent business is retained locally versus 40 cents at a chain. He noted that 56% of profitable Montgomery County businesses are at risk of closure or sale to absentee owners, supporting cooperative conversion.
• Vinny (last name not provided), Ward 1 resident and DC Community Wealth Builders member, asked the council to create a public or land bank to use DC’s cash reserves (hundreds of millions) and vacant properties (billions) to provide low-interest loans to reduce rent, leasing, and energy costs for small businesses.
• Ram Sridharan, public interest attorney with DC Community Wealth Builders, urged funding for a technical assistance grant for worker cooperative conversions. He noted that 6 in 10 small business owners plan to retire within 10 years, but only 15% of businesses are passed down, and without planning they will close.
• Elijah Moses, co-founder of Urban Equity Consulting Group, a CBE in Ward 6, praised the CBE program and DSLBD’s staff. He requested more financial literacy support (e.g., accounting) for small businesses.
• Bill McLeod, Executive Director of the Dupont Circle BID, requested $2 million in grant money to assist small businesses on Connecticut Avenue surviving a 22-month streetscape construction project that has driven sales down.

Discussion Items

• Chairperson Felder and DSLBD Director Rosemary Suggs Evans discussed the agency’s budget priorities. Director Evans stated the budget supports continued operations for Main Streets, clean teams, CBE certification, and programs like Dream and Aspire. She noted that all divisions work together to support the district's 75,000 small and local businesses.
• Director Evans acknowledged the budget is level-funded and does not include reductions to core programs, though some grant lines (H Street Market Grant, sports wagering) were reduced due to evolving circumstances. She said the agency can continue timely processing of CBE applications due to automation improvements in the District Enterprise System (DES).
• On Main Streets, Director Evans said the current $5.5 million funding level is sufficient and grows DC. She explained that Main Street funding allocations are determined by council members, not DSLBD. When asked about equitable distribution, she stated funding is appropriate and reasonable, but she is open to conversation about fairness.
• On clean teams, Director Evans said funding is determined by council members based on their assessment of need. She stated she has not called a council member to suggest reallocation. Chairperson Felder pressed for more need-based distribution. Director Evans noted the agency tracks trash pickup, graffiti removal, and business owner feedback to measure return on investment.
• The conversation also covered the Des system, which recently launched a solicitations portal that sent 150 solicitations to 1,400 CBEs. Director Evans described capital and technical assistance for CBEs preparing for major developments like RFK, including training on bonding and compliance.

Key Outcomes

• No formal votes were taken during the hearing; it was a budget oversight hearing to gather testimony.
• Chairperson Felder indicated he would take into account the strong demand for Main Street services and look more closely at how DSLBD distributes resources equitably, particularly to underserved communities.
• Director Evans stated the agency has the funding it needs to deliver core functions (rating 11 on a scale of 1–10), but she committed to maximizing existing funds and continuing to support all small business programs.