metro creative stock

Flex Fund loan program for Washington small businesses and nonprofits

  • Sun Jul 11th, 2021 1:30am
  • News

Submitted by the Washington State Department of Commerce.

Small business owners and nonprofits across Washington can start applying today for low-interest loans of up to $150,000 through the newly-launched Small Business Flex Fund. The Fund is a public-private partnership aimed at helping small businesses and nonprofits – particularly those in low-income communities – recover and grow as communities across the state reopen for business.

Gov. Jay Inslee in November 2020 approved a foundational investment of $30 million for the state Department of Commerce to create a recovery loan program. Commerce is partnering with several financial institutions and community-based 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 up to $150,000. Loans are available in 60- or 72-month loan terms at interest rates between 3-4.5%.

“Reopening our economy is an incredible milestone and we want to ensure that our smallest businesses and nonprofits have equitable access to flexible financial support to get back on their feet,” said Inslee. “The Small Business Flex Fund will not only aid in our businesses’ recovery from the pandemic, but it will allow them to plan ahead, grow and thrive. And this is a tool that will remain available over many years, to bolster our smallest businesses and nonprofit organizations in times of economic hardship.”

The Fund works with and through local Community Development Financial Institutions, which serve under resourced communities and underbanked businesses the Small Business Flex Fund aims to help.

All small businesses with fewer than 50 employees and $3 million in annual revenue can apply and culturally appropriate in-language assistance is available. Interested applicants pre-apply on the Flex Fund’s online portal and, if they qualify, will be matched with a lender. Once matched, the participating lender will assist the business owner throughout the application process and provide additional advisory support. If a business doesn’t qualify, they will be connected to a trusted community organization that can assist with finding other resources.

Five CDFIs are originating 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.