Washington state Department of Commerce announced this morning $31.5 million in new private investment funds to support loans to small companies around the state, particularly in economically distressed communities.
The funding goes into Washington Small Business Initiative to be contractually managed by Craft3, a community development financial institution. The new investment announced today comes from a consortium led by Wells Fargo.
“This is, by far, the largest loan and single source of capital Craft3 has negotiated in its 20-year history,” said Craft3 president and CEO John Berdes.
“The partnership between Washington State Department of Commerce and Craft3 has used $9.2 million in funds from the U.S. Treasury Department’s State Small Business Credit Initiative to leverage $31.5 million in private lending,” said Cliff Kellogg, director of the state program.
The federal Small Business Jobs Act of 2010 directed $1.5 billion to state programs that improve access to capital for small businesses so they can grow and create new jobs. Washington state received $19.7 million and created several distinct credit programs.
Working with private partners, the state expects to leverage these funds and by the end of 2016 drive up to $300 million in new capital available to Washington small businesses.