Washington Flex Fund Loan Program for Small Businesses and Nonprofits
Presented by the Washington State Department of Commerce.
Washington small business owners and nonprofits can start applying for low interest loans of up to $ 150,000 today through the all new Small Business Flex Fund. The Fund is a public-private partnership aimed at helping small businesses and nonprofits – especially those in low-income communities – recover and grow as communities across the state reopen. .
Governor Jay Inslee approved in November 2020 a base investment of $ 30 million for the state Department of Commerce to create a payback loan program. Commerce partners with several financial institutions and community organizations to lend $ 100 million or more to small businesses and nonprofits with fewer than 50 employees and annual revenues of less than $ 3 million.
Qualifying businesses and nonprofits can apply for loans of up to $ 150,000. The loans are available for terms of 60 or 72 months at interest rates between 3 and 4.5%.
âReopening our economy is an incredible step and we want to make sure our smaller businesses and nonprofits have equitable access to flexible financial support to get back on their feet,â Inslee said. âThe Small Business Flex Fund will not only help our businesses recover from the pandemic, but will also allow them to plan ahead, grow and prosper. And it’s a tool that will remain available for many years to come, to support our smaller businesses and nonprofits in times of economic hardship. “
The Fund works with and through local community development financial institutions, which serve well-resourced communities and underbanked businesses that the Small Business Flex Fund aims to help.
Any small business with less than 50 employees and $ 3 million in annual revenue can apply and culturally appropriate language support is available. Interested applicants pre-apply through the Flex Fund’s online portal and, if eligible, will be matched with a lender. Once matched, the participating lender will assist the business owner through the application process and provide additional advisory support. If a business does not qualify, it will be connected to a trusted community organization that can help you find other resources.
Five CDFIs originate loans for the Fund, including Ascendus, Business Impact NW, Craft3, Evergreen Business Capital Community Finance and the National Development Council Community Impact Loan Fund.
To apply, visit www.SmallBusinessFlexFund.org.