The Washington State Department of Commerce has partnered with state lenders to offer additional loan programs for small businesses.
• Washington Economic Development Finance Authority www.wedfa.org/financinginformation.html • Bond financing assistance for construction projects www.sba.gov/content/surety-bondsbasics
Craft 3 Fund Craft3 is ideal for viable existing businesses that are considered unbankable, particularly in underserved communities. Craft3 can fund companies at levels of $250,000 plus. The program is administered through a nonprofit Community Development Financial Institution (CDFI), partnering with smaller lending firms in the community as needed.
You may also want to consider loans. SBA loans are actually made through commercial banks and credit unions, not the Small Business Administration and are guaranteed by the U.S. government. The Department of Agriculture also makes loans that are guaranteed in this fashion. The five C’s of lending that you had to consider when you opened your business are the same for a business loan to expand or grow. If your business is established, you’ll typically have to show equity in the business equals at least 25% of the loan amount you’re seeking, or that you can bring in additional cash so equity plus cash will total at least 25%. Some loan possibilities include standard commercial loans from banks or credit unions, SBA 7a loans, which can be used for any business purpose, SBA microloans which are up to $50,000, and SBA 504 loans, which can be used for real estate and major equipment purchases.
62