Dollars for Small Businesses

Businesses look to all sources of funding to assist with working capital, capital expenses and other specific financial  demands.

The two major local governments (Pierce County, City of Tacoma) both have extensive assistance programs for small businesses for stretching those working capital dollars or looking for opportunities to replace equipment or expand operations.

Both have several loan programs available to assist businesses and developers to stimulate overall economic development with creation and/or retention of jobs as a primary objective.  These publicly funded programs are designed to support existing businesses (within Tacoma or Pierce County, respective to the business location) with expansion efforts or to finance development projects including acquisition of real estate, new construction, rehabilitation, leasehold improvements, equipment and working capital.

These programs are generally intended to provide partial financing with financial institutions normally providing the bulk of the financing for each project.  These funds are not designed as a substitute for conventional lending sources, but to fill the gaps in the existing financial market or to attract capital which otherwise would not be available.  With each project, the borrower must demonstrate sufficient cash flow to cover the additional debt, and all loans must have full collateral coverage.

Loan volume is dependent on need, funds available, application processing capacity, and marketing of loan programs.  Funding is presently available in each of the programs, and as the loans are repaid, via either monthly payments or full payoff; the funds are then available to be re-loaned to the community.

Programs, eligible use of funds, criteria and available funding are as follows:

CITY OF TACOMA

HUD Section 108 Loans (subject to Tacoma Council approval)
Uses: Land/building, equipment
Criteria: Compliance w/CDBG national objectives
Approximately available: $8 million

CDBG Float Loan (subject to Tacoma Council approval)
Uses: Land/building, equipment
Criteria: Compliance w/CDBG national objectives
Approximately available: $1 million

Business Revolving Loan Fund (TCRA)
Uses: Land/building, equipment, working capital
Criteria: $25,000 - $250,000 per project; One job created/retained per $35,000
Approximately available: $25,000

Title IX Revolving Loan Fund (TCRA)
Uses: Land/building, equipment, working capital
Criteria: $25,000 - $250,000 per project; One job created per $35,000
Approximately available: $250,000

Fire Safety Loan Fund (TCRA) (Pilot Program)
Uses: Fire Code related items
Criteria: $5,000 - $50,000 per project
Available:  $250,000

Grow America Fund SBA 7(a) (in partnership with NDC)
Uses: Land/building, equipment, working capital
Criteria: $100,000 - $5,000,000 per project
Approximately available:  $3 million

Brownfields Cleanup Revolving Loan Program (in partnership with WA Dept. of Commerce)
Uses: Cleanup of hazardous substances
Approximately available: $2,000,000

Tacoma Contact:
James Colburn, Associate Planner
Community & Economic Development Department
City of Tacoma
P:  253-591-5221
E:  jcolburn@cityoftacoma.org

PIERCE COUNTY

Revolving Loan Fund (RLF)
Direct subordinate loans to small businesses in Pierce County (Tacoma & Lakewood ineligible)
Uses: Inventory, equipment, working capital (construction ineligible)
Criteria: Lower-income individuals benefit from 1% of new jobs; One job created per $35,000
Approximately available: $190,000

Investment Loan Program (CIC)
Direct subordinate loans to small businesses located in or expanding in Pierce County
Uses: Inventory, plant expansion, equipment, working capital, accounts receivable
Approximately Available: $130,000 available

SBA 7 (a)
Loan guarantees for small business.  County serves as loan packager.
Uses: Land, building, equipment, working capital
Amount available: $5,000,000 (SBA maximum $3,750,000)

SBA 504 (with Evergreen Northwest Business Development Association, AmeriTrust)
Direct second mortgage loans to small business for expansion projects
Uses: Land, building, equipment
Amount: SBA maximum $5,000,000

Pierce County Contact:
Sheree Clark, Loan Office, Economic Development Division
Office of the County Executive, Pierce County
P:  253-798-6919
E: sclark1@co.piece.wa.us