New state Collateral Support Program complements U.S. Small Business Administration 504 loan program



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News Release




Nov. 18, 2024


*Commerce partners with Evergreen Business Capital Community Finance to launch new gap *

*New state Collateral Support Program complements U.S. Small Business Administration 504 loan program*

OLYMPIA, WA – The Washington State Department of Commerce, in partnership with Evergreen Business Capital Community Finance, has launched a new loan program to help businesses with Small Business Administration (SBA) 504 interim loans qualify for “gap” financing. The new Collateral Support Loan program provides funding to small businesses experiencing a collateral shortfall in their SBA 504 loan.

Small businesses can use SBA 504 loans to purchase or construct owner-occupied commercial real estate with a low-down payment and long-term fixed rates. This allows them to hold on to their working capital while assisting them expand their physical footprint. During the interim phase of an SBA 504 project, between bank closing and the SBA takeout of the second mortgage, the Collateral Support Loan Program creates an opportunity for small businesses to close the temporary collateral gap.

“Starting a small business is tough enough, but expanding and growing that dream is often even harder,” said Commerce Director Mike Fong. “We are excited to work with Evergreen Business Capital Community Finance to help more small businesses access expansion capital they need to grow and thrive through a critical stage.”

“It is an honor to have EBCCF chosen to administer the Washington State Collateral Support program to help our state’s small businesses who otherwise may not have been able to participate in the SBA 504 program. We believe very strongly in our small businesses having access to property ownership as a pathway to creating generational wealth.” Patti Kibbe, CEO and President, Evergreen Business Capital Community Finance.

“Small business ownership is fulfilling but owners do occasionally face some stressful challenges, particularly during growth stages,” said Beto Yarce, the U.S. Small Business Administration’s Regional Administrator for the Pacific Northwest. “Access to capital is crucial and the SBA is here to help navigate access to capital, counseling and other opportunities. The Collateral Support Loan Program can be a vital step to assisting small businesses expand and thrive so we’re excited to partner with Washington State and Evergreen Business Capital Community Finance to address financing challenges.”

The new program is the latest addition to Washington’s planned portfolio under the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). Over the next 10 years, Commerce will receive a total of $163 million in federal funding to implement and oversee the SSBCI programs in Washington state.

“Small businesses are the engine of local economies and a tremendous source of generational wealth-building,” Fong said. “The State Small Business Credit Initiative will have a significant impact by providing capital and expanding equity investments to entrepreneurs in underserved communities across the state, helping them to grow and scale businesses.” 

Visit the Department of Commerce State Small Business Credit Initiative program [ [link removed] ] website to learn more.

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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] ].

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