Finance
There are several funding sources available to new and expanding businesses in Clallam County.
See the links at the bottom of the page for more information about the following programs.
- Rural Washington Loan Fund
Project Qualifications
The Washington State Rural Washington Loan Fund (RWLF) provides gap
financing to businesses that will create new jobs or retain existing
jobs, particularly for lower-income persons.
Businesses in nonentitlement
areas of the state are eligible for these loans. "Gap" is defined as
that portion of a project which cannot be financed through other sources,
but which is the last portion needed before the overall investment can
occur. Priority is given to timber-dependent and distressed area projects.
"Gap" financing can be used for real estate acquisition and improvement, working capital and equipment. Minimum amount: $100,000
Priority Projects
- Manufacturing or other industrial production
- Agricultural development or food processing
- Aquaculture development or seafood processing
- Development or improved utilization of natural resources
- Tourism facilities
- Transportation or freight facilities
- Other activities which represent new technology or a type of economic enterprise needed to diversify the economic base of an area
- Retail or service enterprises that will expand the community's economic
base rather than primarily redistribute the existing customer base.
Ineligible Projects
- RWLF will not finance a business with a negative net worth or when funds would be used for the reduction of an existing lender's risk position or to replace owner's equity.
- Under statute, the program may not finance projects which directly
or indirectly assist in the development of a shopping mall.
Funds Available
- RWLF Loan amount is determined by the "gap" and competitive factors, and cannot exceed one-third of the total project costs.
- Loans up to $700,000 with Director's approval.
- Funds can be lent for the acquisition, engineering, improvement, rehabilitation, construction, operation, or maintenance of any property, real or personal, that is used or is suitable for use by an economic enterprise. Working capital term loans are eligible costs.
- Coastal Float Loan
The Coastal Float Loan (CFL) is used for supplemental financing for expansion and start-up; may be used for fixed assets, working capital and equipment. Maximum amount: $150,000
- Community Development Block Grant
The CDBG Float Loan is a short term loan at low interest rates for qualifying projects. An eligible city or county may apply for a grant under this program in order to extend a short-term loan to a private business providing the business agrees to certain conditions. Typically, the loans are made at well below prime rate.
- SBA Loans and Loan Guarantees
Small Business Administration loans and loan guarantees are packaged by a private lender, not the state.
SBA loans can be used for working capital, equipment, and building acquisition/construction. SBA 504 loans can be used for fixed asset acquisition for projects that create jobs.
SBA guaranteed loans are an
important financing resource for small business owners. Although the
state is not an SBA lender, Washington State Community Development Finance
staff do provide SBA loan packaging assistance in situations where a
lender does not have adequate packaging capacity or experience. In many
cases SBA guaranteed loans can be used in combination with other loan
programs.
If you are interested in getting an SBA guaranteed loan your first step
should be to read the information below and then visit the SBA website
(http://www.sbaonline.sba.gov/financing/indexloans.html).
If it looks like your business
may qualify, you should first contact the commercial lender(s) you typically
borrow from to see if they are interested and willing to issue such
a loan.
SBA 7(a)
The most common SBA loan is the SBA 7(a), or Guaranty Loan. Under this
program, the lender lends its own funds and the SBA guarantees up to
75 percent of the loan against default. In addition to reduced risk
to the lender, the lender may sell the 75 percent guaranteed portion
of the 7(a) loan on the secondary market. This makes SBA programs even
more attractive to lenders. All banks are eligible to participate in
SBA programs. The 7(a) program is SBA’s best means of helping
small firms obtain long-term financing for business needs such as working
capital, machinery, equipment, furniture, fixtures, leasehold improvements,
building acquisition or construction, and in some cases, debt consolidation.
The general upper size limits for SBA eligibility are:
Retail or service business: Annual sales less than $6.0 million
Wholesaler: Fewer than 100 employees
Manufacturing: Fewer than 500 employees
Farm: Annual sales less than $750,000
For more information about SBA 7(a) loans please go to the link: http://www.sbaonline.sba.gov/financing/fr7aloan.html.
SBA 504
The purpose of the 504 loan is to stimulate economic growth through
job creation and for each job created, $50,000 of SBA funds may be lent.
Loan funds can be used only for fixed asset acquisition such as land,
building, and equipment. The minimum project size should be about $500,000.
The benefits of this program are the below market and fixed rate interest
on the 504 debenture portion of the loan, and the subordination of the
SBA debenture loan to the bank loan, thereby reducing the bank’s
risk factor.
For more information about
SBA 504 loans please click on the link at: http://www.sbaonline.sba.gov/financing/frcdc504.html
- Forest Products Revolving Loan Fund
The FPRLF is used to finance projects that implement value-added production processes. Financial assistance is available to eligible forest products firms in Washington state.
The program provides matching loans to forest products manufacturing firms to finance projects that contribute to the diversification of the forest projects industry. Minimum amount: $50,000.
- Child Care Facility Fund
The CCFF provides funds for costs related to starting or expanding a child care facility. Direct loans are available with a maximum amount of $100,000. Grants are available and require the borrower to match the grant on a dollar to dollar basis with cash, goods or services. Grants are for a maximum of $25,000.
- Child Care Micro Loan Fund
This a low-interest loan for start-up, expansion, and improvement of child care facilities, statewide. It focues on providing affordable resources to licensed or certified child care centers and family child care homes. Special consideration will be give to programs serving children receiving state subsidies. Maximum amount: $25,000.
Federal Grant Resources
The U.S. Small Business Administration does not offer grants to start or expand small business. It does offer a wide variety of loan programs (see above).
The SBA grants are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments.
For more information about specific grants see SBA Financial Assistance here:
For more information and contacts see Choose Washington.
For SBA financing information in Washington state, click here.
