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Minority and Women Owned Business Loan
Project Qualifications
To support business and job development, the Department of Community,
Trade and Economic Development (CTED) offers flexible financing
for minority and women-owned businesses through the Rural Washington
Loan Fund Minority and Women-Owned Business Lending Initiative.
Projects must meet the following criteria:
- The borrower must be certified by the Washington
State Office of Minority and Women Business Enterprises
prior to presentation of the loan to the Loan Review Committee.
- The project must conform to CDBG program requirements.
- The borrower must demonstrate the ability to repay the loan.
- The borrower must have a meaningful financial investment
in the business and be willing to commit liquid assets to the
project and pledge a security interest in all reasonable
personal and business collateral, including personal guarantees.
- If the loan exceeds $50,000, the borrower must obtain
participation from other sources in the financing of the project.
Eligible Projects
- Loan funds can be requested for start-up costs, inventory,
working capital, purchase of equipment, real estate, working
capital, assistance in securing contractor bonding, and
technical assistance in such areas as marketing, accounting, and
management.
- Projects must be sponsored by a local government
eligible to apply for Small Cities Community Development
Block Grant funds through CTED.
Loan Terms
- Loans may range from $5,000 to $100,000
with an emphasis on smaller transactions.
- If the project cost is over $50,000, participation
by other loan sources must by maximized.
- The interest rate is negotiable and fixed upon loan approval
for direct
loans, or can be at the same rate as the participating lender.
- Repayment terms include:
- Up to 5 years for working capital.
- Up to 10 years for equipment.
- Up to 15 years for real estate.
- Loans with repayment terms over five years may have a
balloon clause to allow adjustment of the interest rate
and encourage refinancing in the commercial market.
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