Washington Small Business Credit Initiative
Stories of Change- The Craft3 fund partnered with Impact Capital to cover pre-construction loan to the aging YMCA of Columbia-Willamette (Vancouver, Washington). Craft3's $2,500,000 loan made possible by the Small Business Credit Initiative updated numerous amenities to the facility.
The federal Small Business Jobs Act of 2010 directed $1.5 billion to state programs that improve access to capital for small businesses so they can grow and create new jobs.
Washington state will distribute $19.7 million through three new Small Business Credit Initiative programs. Working with private partners, the state expects to leverage these funds and by 2016 drive around $300 million in new capital to Washington small businesses.
The Capital Access Program (CAP) can help small businesses secure financing in the difficult post-recession credit environment. The CAP encourages lenders to make small business loans that fall just short of conventional business loan approval. The program will mitigate the risk by providing additional funds that lenders can use to cover losses from loan defaults. CAP website for Business CAP website for Lenders.
Craft3 is a non-profit Community Development Financial Institution (CDFI) that lends to small businesses in underserved communities across the state, including by partnering with other small business lenders. Through its SBCI partnership, Craft3 will generally make loans from $250,000 to $5 million (smaller loans are also available directly from Craft3).
The W Fund, projected to be a $25 million venture fund, will invest in early-stage life science, biotech, medical device, alternative energy, and information technology companies emerging from universities, research centers and individual start-ups across Washington. The objective is to spur company formation and job creation from Washington’s significant research and development base. Fund recipients will be located in the state, providing vital capital and creating economic opportunity in key growth sectors.