New and established programs across Washington state will help communities address wealth disparities, build financial assets



Having trouble viewing this email? View it online [ [link removed] ]

Commerce Logo


 

News Release




Nov. 1, 2024


*Commerce awards nearly $40 million to support equitable economic development*

"*New and established programs across Washington state will help communities address wealth disparities, build financial assets *"

OLYMPIA, Wash. - The Washington State Department of Commerce today announced $39.8 million in grants to 19 organizations and institutions that provide financial support to communities through the Community Reinvestment Project [ [link removed] ] (CRP) The CRP is a *community-designed plan* [ [link removed] ] to uplift those disproportionately harmed by the war on drugs. The aim is to advance equitable economic development by helping target communities acquire and secure assets and work together to achieve goals.

Commerce Director Mike Fong joined HomeSight [ [link removed] ] Executive Director Darryl Smith at Othello Square in south Seattle today to celebrate the announcement. HomeSight is one of the nonprofit organizations awarded a grant from Commerce.

“Access to capital opens doors to economic opportunity and generational wealth-building, but many communities face historic and systemic barriers,” said *Commerce Director Mike Fong*. “We are proud to stand with community partners throughout the state who are promoting equitable access to financial resources that help individuals, families and businesses get ahead and grow.”

This latest investment funds two CRP programs: the Loan Guarantee Program and Blended Capital Investments.

The *Loan Guarantee program* is a pool of resources that provides funding and loan loss reserves to lenders across the state, including Community Development Financial Institutions (CDFIs), local municipalities, and non-profit organizations. These organizations can then offer financing and financial services to underserved communities, small businesses, and startups that traditional banks often overlook.

The *Blended Capital Enhancements* program aims to assist people in securing and building assets. The program will help fund programs that make it easier for people to buy or expand a home, commercial property, business asset, or vehicle; reduce debt; build credit; save more using matching funds; and getting other financial support and services.

“Homeownership remains one of the most critical strategies to address wealth disparities and promote asset building,” said Commerce Assistant Director of Housing, Corina Grigoras. “Our state and country’s history of residential segregation and other racist housing-related laws, policies, and practices, have created large disparities in home ownership rates and opportunities.”

Grigoras noted these two new programs announced today are important steps forward and align with Commerce’s 2022 Homeownership Disparities Work Group recommendations [ [link removed] ].

The funding prioritizes, but is not limited to, programs serving Black, Latine, and tribal communities in an effort to disrupt significant wealth disparities across the state. Data in the Community Reinvestment Plan [ [link removed] ] has shown that these communities were disproportionately affected by the historic design and enforcement of U.S. state and federal criminal laws and penalties for drug possession, also known as the war on drugs.

“Racial disparity in homeownership wasn’t created by accident and it won’t be fixed by accident,” said *HomeSight Executive Director Darryl Smith*. “But we can’t address these disparities with the housing inventory that’s out there now. HomeSight and our partners in the Black Home Initiative are grateful for the Department of Commerce’s investment in the Field Order 15 Fund and its innovative strategy to lower the barriers for builders who are invested in our goal to improve homeownership rates for the BIPOC community. These builders need and deserve a seat at the table and a voice in the solution.”

“At the Center for Inclusive Entrepreneurship (CIE), we work in marginalized rural areas with BIPOC emerging entrepreneurs,” says *Mike Skinner, **Executive Director with **CIE*. “With help from Commerce, we are grateful for the opportunity to launch our Matched Savings program by providing $4,500 seed grants along with no-cost training and technical assistance to help emerging entrepreneurs get their businesses started.” 

It is projected that 87%of the funds awarded will go to Clark, King, Pierce, Snohomish, Spokane, and Yakima Counties – statistically home to communities most impacted by the war on drugs. The remainder of funds will be spread across Washington’s other 33 counties.

Recipients of these grant funds are:

*Loan Guarantee - New construction: **$5 million*


* *Homesight*, statewide: $5 million

*Loan Guarantee - Home expansion/accessory dwelling unit: $6,270,000*


* *Black 4 Enterprises LLC, *King, Snohomish, Pierce counties and others as needed: $3 million
* *Byrd Barr Place, *King, Snohomish, Pierce, others as needed: $2.25 million
* *Central Area Collaborative, *King, Snohomish, Pierce counties and others as needed: $1,020,000

*Loan Guarantee - Consumer Loans**: $1 million*


* *Black 4 Enterprises LLC, *King, Snohomish, Pierce counties and others as needed: $1 million

*Loan Guarantee - Business expansion and start-up: $4,302,910*


* *Langston, *King county-based, open to anyone who can attend at the Seattle location: $424,300
* *Lummi Indian Business Council, *Lummi Indian Tribe: $835,000
* *Northwest Native Chamber, *Clark, Cowlitz, King, Okanogan, Pierce, Snohomish, Spokane, Whatcom, and Yakima counties: $748,910
* *Phenomenal She, *Pierce and South King county: $300,000
* *Rainier Valley CD, *King County - Rainier Valley/Seattle: $1,994,700

*Blended Capital Enhancements: $23,258,200*


* *Center for Inclusive Entrepreneurship, *Adams, Benton, Franklin, Grant, Clallam, Jefferson, Skagit and Island counties: $250,000 for business start-up and expansion
* *City of Tacoma, *Tacoma: $4 million for business start-up or expansion
* *Kitsap Community Resources*, Kitsap, King, Pierce counties: $1 million
* Funding for GED, college scholarships, and credit building

* *Making a Difference Foundation*, Pierce and South King County: $1,008,200 for funding for farmers, business start-up and expansion
* *NW Access Fund, *Clark, King, Pierce, Snohomish, Spokane, Yakima counties and others as needed: $1.5 million for home and vehicle modification, and business opportunities for individuals with disabilities
* *Opportunities Industrialization Center*, Yakima, Kittitas, Benton, Franklin, Adams, Grant, Chelan, Douglas, and Okanogan counties: $2 million for business start-up and expansion
* *Pacific NW Tribal Lending*, Tribal communities in Western Washington: $1 million for business start-up and expansion, consumer loans, and debt repair
* *Seattle Urban Leagues*, Seattle: $9.5 million for down payment assistance, major systems home repair
* *WOW Tri-Cities*, Yakima, Adams, Benton, Columbia, Franklin, Grant, and Walla Walla counties: $3 million for consumer loans, business loans, educational scholarships, emergency loan fund

Learn more about the CRP on the Commerce website [ [link removed] ].

###

Newsroom [ [link removed] ]

Media Contact

Penny Thomas <[email protected]>, Commerce Communications, (206) 256-6106 | Mobile/text: (360) 704-9489






Stay connected

subscribe [ [link removed] ]twitter [ [link removed] ]facebook [ [link removed] ]


About Commerce

Commerce works with local governments, businesses, community-based organizations and tribes to strengthen communities. The department’s diverse portfolio of more than 100 programs and effective public and private partnerships promote sustainable community and economic development to help all Washingtonians thrive. For more information, visit [link removed]. For information on locating or expanding a business in Washington, visit choosewashingtonstate.com [ [link removed] ].

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need to use your email address to log in. If you have questions or problems with the subscription service, please visit subscriberhelp.govdelivery.com [ [link removed] ].

This service is provided to you at no charge by Washington Department of Commerce [ [link removed] ].

Subscribe [ [link removed] ] | Manage Preferences [ [link removed] ] | Unsubscribe All [ [link removed] ] | Help [ [link removed] ] | Contact us [ [link removed] ]





This email was sent to [email protected] using GovDelivery Communications Cloud on behalf of: Washington State Department of Commerce · 1011 Plum Street SE, P.O. Box 42525 · Olympia, WA 98504-2525 GovDelivery logo [ [link removed] ]