Funding for startups: $20 million
Washington technology companies, struggling businesses qualify for loans and investments
OLYMPIA – Washington will offer nearly $20 million in loans and investments to small businesses through three new programs funded by the federal government.
The programs are designed to help businesses that are struggling to obtain credit from conventional sources, and for early-stage technology companies.
The money could generate 15 times as much economic activity as it gives new businesses small boosts that qualify them for loans they wouldn’t otherwise get, and as those businesses grow over time, said Mike Carr, an official with the state Department of Commerce, which will oversee the program.
With $19.7 million from the U.S. Treasury Department, Washington state will set up:
• The Craft3 Small Business Credit Initiative, with $8.7 million in loans for small businesses in underserved communities, Indian reservations and women- and minority-owned businesses.
• The Capital Access Program, with $6 million to provide additional insurance for small businesses that have trouble getting bank loans.
• The W Fund, which will start a venture fund with $5 million to invest in early-stage technology, life science and information technology from the University of Washington and other research centers in the state.