A business improvement district (BID) is a special self-taxing district that collects revenue within its boundaries for the benefit of small businesses in the district. Funds are often used to pay for public facilities, improvements, or services, including district upgrades, security, marketing, public space management, and social services. There are approximately 1,000 BIDs in the United States. A community improvement district (CID) is a type of BID that tends to be more autonomous than other types of BIDs and provide a wider scope of services and facilities. As a form of local government, CIDs are also often involved in larger capital improvements such as road or sidewalk building or repair.

BIDs and CIDs are often responsible for transforming streetscapes and central business districts. While their activities have the potential to accelerate gentrification or displace small businesses, BIDs and CIDs can also support BIPOC- and immigrant-owned businesses by creating local hiring and purchasing programs, equitably distributing public services, and promoting commercial corridors that are home to these businesses. To do so, BIDs or CIDs should have diverse boards of directors that are representative of neighborhood small business owners and residents.