Washington state receives $163.4 million to fund innovative small business loan programs
Five new programs to be offered through the State Small Business Credit Initiative (SSBCI)
OLYMPIA, WA – Washington state has been awarded $163.4 million from the U.S. Treasury Department to operate five capital access programs for small businesses. The new funding will be used to launch an updated version of the state’s highly successful Small Business Credit Initiative (SSBCI) program, which was completed in 2016. SSBCI leveraged an original $19.7 million investment from the 2010 Small Business Jobs Act into $150 million in new capital for Washington small businesses.
With the federal infusion, Washington will operate five distinct programs under SSBCI 2.0:
Micro and small Business Loan Fund – Assists small businesses with obtaining loans through participating elnders and Community Development Financial Institutions (CDFIs).
Revenue-based Loan Program – Provides access to capital through a revenue-based debt product that focusses on underbanked communities around the state.
Washington State Venture Capital Fund – An equity/venture capital program that provides capital commitments to new venture capital funds with diverse investment teams or that are focused on investing in underserved startups or targeted investment objectives such as climate technologies.
Commercial Real Estate Loan Program – Provides subsidized owner-occupied commercial real-estate loans that could be used for tenant improvements, construction, purchase or refinance.
Small Business Collateral Support Program – Provides small business loans to companies that have trouble qualifying for short-term loans through collateral support.
The programs will be launched in mid-2023 once they have completed regulatory review and are able to accept applications. Commerce will announce programs as they come online.
“Advancing equity has been a key priority of the Biden-Harris Administration since day one, including through its implementation of American Rescue Plan programs. This includes efforts to support small business growth and expand access to capital in communities across the country,” said Deputy Secretary Wally Adeyemo. “The State Small Business Credit Initiative is helping to unlock the potential of entrepreneurs in underserved communities across the nation who may have otherwise never had the support needed to pursue their business ideas and ambitions.”
“We are honored that the U.S. Treasury has seen the value of our proposed programming for SSBCI 2.0,” said Chris Green, Commerce Assistant Director, leading the state’s Office of Economic Development and Competitiveness. “Our initial program was tremendously successful in providing financial support to our state’s small businesses and this increase in funding will allow us to add several innovative programs that will have a significant impact on businesses that have historically had difficulty finding funds to grow and expand.”