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Small Business Down Payment Grant Program

Own your business property or expand to a new location. 

 

By purchasing your business property, you can start building equity— equity you can use in the future to fund more growth, more jobs, and more opportunities.

Thanks to a special program offered by Bank of America (BoA), your business can soon begin to play an even more important role in supporting your community.

If your business is a woman-owned business enterprise (WBE) or a minority-owned business enterprise (MBE), BoA invites you to participate in their new Down Payment Program that provides a grant of up to 50% of the required down payment on SBA 7(a) and SBA 504 loans for owner-occupied commercial real estate in Opportunity Zones within your city. The grant itself, which is not to exceed $25,000, does not have to be repaid.

IMPORTANT TAX INFORMATION: The BoA grant can be considered taxable income by both state and federal authorities, which means that you may owe more in taxes. If you choose to accept this grant, BoA is required to report the funds given to you to the Internal Revenue Service (IRS) on Form 1099-MISC. BoA will also send you a copy of this form for your tax records. BoA will need a copy of your W-9 to determine your tax impact. Before accepting this grant, BoA recommends that you talk with a tax advisor.

To learn more and apply, talk to a BoA Small Business Specialist today!

Answers to questions about this program

Q: Who qualifies for the Down Payment Program?

A: Sole proprietorships and business entities whose sole owner or principal owner(s) self-identifies as a woman, Black or African American, Hispanic or Latino, American Indian or Alaska Native, Asian, Native Hawaiian or other Pacific Islander—with 51% ownership and control of the business.

Q: Does the money have to be repaid?

A: The grant portion of your down payment—up to $25,000—does not have to be repaid.

Q: Can I take advantage of the program if I plan to move to a different location?

A: Yes. This program applies to SBA loans for the purchase of owner-occupied commercial real estate in Opportunity Zones within the city.

Q: What is an Opportunity Zone?

A: Opportunity Zones were created to spur private investment in areas across the United States that have not seen the same level of economic recovery as other communities.

Q: If I don’t qualify for the program, can I still apply for an SBA loan?

A: Yes. You may still apply for SBA loan products, which require a down payment as low as 10% and may feature longer repayment terms. SBA loans are available to both new and established businesses.

If you have any other questions, please speak with a BoA Small Business Specialist today, by clicking here.

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