Staff Column | Revitalizing DC’s Small Business Future

DC Needs to Reignite Its Pandemic-Era Playbook — This Time for a Stronger, More Inclusive Small Business Future

DC’s small businesses are at a pivotal moment.

Not one defined by crisis, but by possibility. The decisions we make now will shape both the future of our economy and the District’s ability to expand opportunity and upward mobility for all. At The Coalition, we’re using #DCSmallBizMonth not just to celebrate the entrepreneurs who power our neighborhoods, but to call for a renewed, coordinated response that meets this moment with creativity, urgency, and a commitment to economic vitality.

The pressures are real. More than 40% of local restaurant owners report they expect to close this year. Office buildings remain under-occupied despite the return to office mandates. A projected 21% decline in the federal workforce could mean as many as 40,000 jobs lost in the region, driving down foot traffic, contracts, and spending in communities already facing deep economic shortfalls.

When we look at these challenges, we aren’t just thinking about the individual businesses. We’re looking at the entire foundation for a strong economy in DC. When small businesses struggle, it reverberates across the workforce, across supply chains, and into the affordability of daily life — including housing, food, and healthcare.

We Have the Playbook

Throughout the COVID-19 pandemic, we saw what coordinated action could accomplish: daily calls with business owners, streamlined permitting, new relief programs, and unprecedented public-private collaboration. Over $800 billion in forgivable PPP loans flowed to businesses nationally, including thousands in the District. But it wasn’t just the money, it was the mindset that made the difference.

That mindset, bold, collaborative, community-first, is what we need again. And there were key components that led to its profound impact:

1. Streamline and empower

One of the fastest ways to support small business owners, particularly first-time entrepreneurs and those from historically underresourced communities, is to simplify the process. The District Council, alongside the DC Department of Small & Local Business Development, has taken important steps to consolidate licensing and clarify agency roles. Let’s go further: Imagine a city where permits are processed in 30 days or less, and every new entrepreneur gets a clear, supportive roadmap to get started. That’s how we lower barriers and unlock pathways to ownership and asset-building.

2. Reconnect and coordinate

During the pandemic, daily meetings between city agencies and business leaders created unprecedented levels of alignment. That model doesn’t need to be reserved for emergencies. Real-time data, trust, and shared accountability can not only help us respond to today’s shifts but also prepare for tomorrow’s.

3. Harness the power of anchor institutions

Through our DC Community Anchor Partnership (DCAP), we see firsthand how institutions like hospitals, universities, and utilities can boost economic mobility by buying from local businesses. As the federal government scales back spending, local procurement is more important than ever. Every contract awarded to a DC-based business creates jobs, supports families, and strengthens communities.

4. Support workforce training and adult learning

The shift in federal employment offers a powerful opportunity: to help people pivot into entrepreneurship, consulting, or new sectors entirely. Let’s make sure that transition is intentional by reducing barriers to business ownership and connecting people to the tools, capital, and coaching they need to succeed. However, as we work to support former federal employees in finding their next chapter, it is vital to remain focused on those who have long been excluded from economic opportunity. Expanding access to quality workforce development, adult learning programs, and basic job training is essential to building a more sustainable economy.

5. Reignite philanthropy and corporate leadership

During the pandemic, we also saw the kind of change and systemic impact that is possible when philanthropy and the private sector step in and step up. Today’s challenges require the same kind of leadership — one that focuses on coordinated partnerships, long-term investment, inclusive growth, ecosystem building, and systems-level change. This is a moment to recommit, not retreat.

6. Connect small business vitality to affordable housing

Small businesses and housing stability go hand in hand. Thriving commercial corridors create jobs that are not only easily accessible to residents but also help them afford to stay in their neighborhoods. Stable housing also gives entrepreneurs and workers the foundation they need to take risks and grow, pushing themselves to be more economically independent and mobile. A holistic approach that connects the small business ecosystem, workforce development, and housing is essential to a truly sustainable economy.

Let’s Rise to the Moment

Though it is not likely we will see another surge of federal relief, we don’t need it to build stronger and better. We’ve done this before, and we can do it again. The opportunity before us isn’t just to preserve what we have, but to build something stronger: a DC where small businesses drive real pathways to prosperity for all who call this city home.