Providing small businesses with access to capital.
It can be difficult for small businesses to secure financing in this post-recession economy. To improve access to funds so businesses can grow and add new jobs, the federal government passed the Small Business Jobs Act in 2010. This initiative allows states to create new programs that are geared specifically to the needs of small businesses. In Washington, the Department of Commerce has worked with private financial institutions to create four new programs whose $19.7 million in funds will deliver $300 million in new capital to Washington State small businesses by 2016.
Craft3 is ideal for existing businesses that are considered unbankable. They specialize in underserved communities and can fund needs of $250k plus. The program is administered through a non-profit Community Development Financial Institution (CDFI), partnering with smaller lending firms in the community as needed. Apply directly here.
The W Fund is a venture fund that is intended for companies in their early stages, emerging from state universities and research centers in the following sectors: life sciences, biotech, medical device, alternative energy and information technology fields. The goal of the W Fund is to spur innovation, business formation and job creation, taking advantage of the state’s significant research and development base. Fund recipients must be located in Washington and create economic opportunity in the state’s key growth sectors.
The Collateral Support Program (CSP) can help small businesses secure SBA 504 financing with their lenders when collateral support is a concern. CSP will place cash deposits with the lending institution as additional collateral support to help lenders approve the necessary bridge loan required to achieve SBA 504 approval. SBA 504 loans can provide financing for real estate as well as heavy equipment. Lenders can visit the CSP website for more information on how to participate.