Boston committee advances plan to accept $500,000 for Commercial Acquisition Assistance Program

Boston City Council’s Committee on Planning, Development and Transportation on April 3 received a briefing on a request to accept and expand $500,000 in Neighborhood Development funds awarded by the Boston Redevelopment Authority to seed the Commercial Acquisition Assistance Program (CAP).

Chair Councilor Sharon Durkan opened the hearing, which featured presentations by Donna Right, Interim Chief of Economic Opportunity & Inclusion, and Filomena, CAP’s senior advisor. Officials said the funds would be administered by the Office of Economic Opportunity & Inclusion and used largely to form a down‑payment assistance pool that can be structured as a five‑year forgivable loan to bridge upfront equity gaps in commercial property acquisitions.

“Owner‑occupied commercial property is a key aspect of the program,” Filomena said, describing CAP’s goal to merge capital tools and wraparound technical assistance so long‑standing neighborhood businesses can remain in place. Donna Right reviewed recent pilot transactions in Hyde Park — a hair salon and a brewery — that city staff said illustrated how blended capital (grants, subordinated debt and private financing) plus service‑provider support can complete deals lenders would otherwise decline.

Officials said the $500,000 would primarily seed forgivable down‑payment assistance and is the city’s first direct seed contribution for CAP; prior CAP work used a Bar Foundation grant. Staff described the forgivable assistance as typically amortized over five years and forgiven incrementally if reporting and program conditions are met. Filomena told the committee the exact number of transactions the money will support depends on deal size, and staff estimated the pool would likely enable roughly five transactions on average given a mix of small and larger purchases.

Committee members pressed staff on sustainability and scale. Staff said ongoing fundraising and program design (including principal repayment in some cases) are expected to create limited recycled capital over time, but the down‑payment bucket is largely grant‑like and may not fully revolve. Staff also said they have an active pipeline after outreach—about 36 businesses have contacted the team, roughly ten have shared financials and four are expected to close this summer—and that CAP procured LEAF as the program administrator to manage intake, lender engagement and closings.

Councilors emphasized wraparound services and community benefit. Filomena said CAP will coordinate with neighborhood business managers, main‑street organizations and a range of technical assistance providers, and will require community support letters with transactions. Staff said program outcomes will be tracked in routine reporting that includes jobs and business health measures.

The Committee did not take a vote on April 3. Chair Durkan said the administration will bring the matter forward for a full Council vote at the next City Council meeting.