Areas Served: Clark, Klickitat and Skamania County
Previously within the Washington Investment Fund (WIF), there was a Microloan Program, and a Business Development Loan Program.
The Washington Economic Vitality Plan update in 2004 re-organized these two loans into a single business lending program called the Private Business Development Loan.
The merging of the two plans was completed in spring 2006. The goal of the Business Development Loan Program is to stimulate job creation, business and job retention, and increase income in the Scenic Area by providing lending capital for business development and expansion.
Eligible Activities
¢Fixed-asset financing
¢Working capital
¢Facility development
¢Debt restructuring (if part of an overall expansion or retention plan) Requirements
¢The business project is located within the Washington state National Scenic Area boundaries
¢The business project will result in job creation or retention
¢The project leverages the maximum possible private capital from private financial institutions
¢The project costs are firm and any real estate is under control of the business with appropriate permits available without significant contingency
¢The project will not result in a relocation of jobs from one gorge community to another
¢The business has demonstrated ability to manage the project and generate sufficient income to meet all obligations including repayment of the program financing
¢The business is willing to make available all reasonable collateral and guarantees to secure the financing
¢The business is able to secure all necessary permits prior to release of financing through the program
¢The business agrees to comply with all applicable state and federal regulation Loan Amount Limits Minimum: $10,000 Maximum: $75,000 * The Washington Investment Board reserves the right to consider larger loans if the fund permits and the project merit a larger amount.
Loan Terms
¢Interest rates and any loan fees will be set at the time of loan approval
¢Interest payments may be deferred, based on the applicant’s justification of need
¢Repayment terms are also negotiable based on use of funds and the borrower’s ability to repay, but in no case will maturities exceed 20 years
¢Typically, terms will be 3 to 5 years for working capital; up to 10 years for equipment and 15-20 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
¢Loans under this program may fund up to 80 percent of total project costs, unless extreme financial need warrants greater participation
¢Collateral is required as a secondary repayment source.
The amount of collateral required is dependent on the financial strength of the borrower and the use of funds
¢The borrower must demonstrate a minimum of ten percent equity injection in the project
Contact InformationSkamania County Economic Development Council
Address: 167 NW Second St
City: Stevenson
State: Washington
Website:
http://www.skamania-edc.org/business-assistance/loans-and-programs.html
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