State makes low interest loans available to small businesses

Low-interest loans of up to $150,000 are available to small business owners and nonprofits through the state’s new Small Business Flex Fund.

The state Department of Commerce is partnering with financial institutions and community-based organizations to lend $100 million or more to firms with fewer than 50 employees and annual revenue of less than $3 million.

Qualifying firms can apply for loans up to $150,000. Loans are available in 60- or 72-month terms at interest rates between 3% and 4.5%.

The fund is a public-private partnership aimed at helping small businesses and nonprofits — particularly those in low-income communities — recover as the state reopens for business.

“Reopening our economy is an incredible milestone and we want to ensure that our smallest businesses and nonprofits have equitable access to flexible financial support to get back on their feet,” Gov. Jay Inslee said in a statement. “The Small Business Flex Fund will not only aid in our businesses’ recovery from the pandemic, but it will allow them to plan ahead, grow and thrive.”

Commerce Department Director Lisa Brown said “the COVID-19 pandemic shone a bright light on many of the historic inequities and barriers facing different communities.”

“One of those barriers is access to working capital for small businesses and nonprofits trying to develop and grow, especially those in low-income areas and led by women and people of color,” Brown said. “We designed the Small Business Flex Fund to provide more equitable access to growth capital for smaller, local businesses and nonprofits, ensuring a greater economic recovery for all of Washington.”

For program information, go to: SmallBusinessFlexFund.org.