"This moment reflects both deep gratitude and strong momentum,” said Commerce Chief of Staff Nicole Lutomski. “Cheryl built a foundation rooted in trust, partnership, and listening to communities. Beto brings that same commitment to people and place, and he is exceptionally well-positioned to carry this work forward alongside an incredible team.”

The Community Engagement Division works to expand community capacity and access to resources for communities with limited access to resources across Washington, especially efforts around child care and equity. It includes the Regional Community Engagement unit, whose regional engagement directors live in and serve communities statewide. Team members work closely with local leaders and organizations to help communities access support, resources, and funding. 

Yarce is eager to step into the role. He has extensive experience in community and economic development across nonprofit, government, and entrepreneurial sectors

“My career has reinforced that meaningful engagement happens when we listen deeply, honor lived experience, and create space for communities to co-lead solutions rather than simply receive services,” Yarce said. “Commerce has a reputation for advancing an equity-centered, people first approach that meets communities where they are, and I’m honored to join the work.”

Most recently, Yarce (pictured at right) served as the Small Business Association’s Region 10 Pacific Northwest administrator, an appointment by President Joe Biden. In that role, Yarce supported more than 1.3 million small businesses through expanded access to capital, counseling, and federal contracting opportunities in Washington, Alaska, Oregon, and Idaho.

Yarce moved to Seattle in 2003 from Mexico, launched a business, and became active in local entrepreneurial and immigrant communities. He later led Ventures, an SBA microlender and nonprofit focused on alleviating poverty through small business ownership. His civic roles include serving on the Washington LGBTQ Commission and the Seattle Small Business Advisory Council. An entrepreneur himself, Yarce is the CEO and founder of Beto Yarce Consulting, helping organizations strengthen leadership, strategy, and performance.

As Commerce welcomes new leadership, the agency also honors Smith’s legacy. During her tenure, Smith helped shape equity-focused initiatives and programs spanning child care policy, local infrastructure financing, environmental protection and small business support. She received the Governor’s Leadership in Management Award in 2021 for her work on equity.

“My personal quest has been to proactively champion equitable access to resources and power for historically excluded communities,” Smith said. “I know that this mission will continue with Commerce’s strong leaders, who understand the wonderful diversity of Washington and the importance of embedding equity in all of the work we do.”

This comes at a pivotal time for Commerce. In 2025, the Community Engagement Division led a statewide survey and series of focus groups to better understand how the agency can effectively support communities. More than 4,000 people participated, representing nonprofits, local governments, businesses, community organizations and individuals from every county in Washington.

Based on that feedback, Commerce is making changes to simplify access to funding opportunities and better support small and rural communities with planning, readiness and long-term capacity building. Yarce will play a key role in advancing this work.

“This leadership transition underscores Commerce’s continued commitment to equity, partnership, and community-driven economic development across Washington,” Lutomski said. “Cheryl’s service has laid an incredible foundation for Commerce’s future.”

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