Lenders awarded funding will help borrowers who otherwise may not be eligible for traditional bank loans
OLYMPIA, WA – The Washington State Department of Commerce today named the first eight recipients of grants from a new Equitable Access to Credit program. The funding will allow Community Development Financial Institutions (CDFIs) to offer technical assistance services, small business training, loans and investments to aid borrowers who may not otherwise be eligible for traditional bank loans.
”Access to capital has long been at the top of the list of small business needs, especially in underserved communities,” said Commerce Director Mike Fong. “The Equitable Access to Credit program represents a unique funding mechanism to fuel small business growth and create new opportunities throughout the state.”
The inaugural grant awardees will receive a total of $1 million:
- Craft3 – $172,493
- Northwest Access Fund – $172,493
- MoFi – $172,493
- Business Impact NW – $149,494
- Enterprise Community Loan Fund – $137,994
- Chehalis Tribal Loan Fund – $95,676
- JST Capital – $66,237
- Rainier Valley Community Development Fund – $33,119
The Washington State Legislature created the Equitable Access to Credit program in 2023 through HB1015. The program awards grants to qualified lending institutions using funds generated by contributions from businesses in exchange for tax credits through the Department of Revenue (DOR). Any business with state Business and Occupation (B&O) tax liabilities can contribute to the program and receive a $1 for $1 tax credit.
”Craft3 is honored to be recognized with one of the inaugural awards from the Washington Equitable Access to Credit Program,” said Bruce Brooks, Craft3 president and interim CEO. “Small businesses provide 49.8% of jobs in Washington State and this grant will help us serve entrepreneurs who are working to build vibrant communities and who, too often, struggle to access the capital they need.”
The Equitable Access to Credit program encourages investment in communities that have historically lacked access to capital. At least 65% of the value of all grants awarded in any calendar year go to native CDFI grantees or grantees for services or investments, or both, in rural counties.
“We are deeply honored to be awarded this grant from the Washington State Department of Commerce, which will significantly enhance our ability to serve the members of the Confederated Tribes of the Chehalis Reservation and other Native American communities in Southwest Washington,” said Tamra J. Marlowe, Executive Director, Chehalis Tribal Loan Fund. “At the Chehalis Tribal Loan Fund, we are committed to breaking down financial barriers and fostering economic empowerment. Brick by brick, we are paving the way to financial empowerment through education, coaching, and fair lending. This funding allows us to expand access to vital resources, promote financial literacy, and support entrepreneurship within these communities. Together, we are building a more inclusive and equitable future for all.”
Deadline for 2024 contributions is Dec. 31
To date, Washington businesses have contributed $5.9 million to the program. The 2024 window for tax deductible contributions closes Dec. 31 and contributions for this year will be available in 2025. More information is available on the Washington State Department of Commerce Equitable Access to Credit program webpage.
Media contact: Penny Thomas, Commerce Communications, 206-256-6106