Small Business Flex Fund exceeds $100 million goal to support equitable recovery for Washington small businesses, announces extended application timeline

OLYMPIA, Wash., Sept. 7, 2022 /PRNewswire/ -- The Small Business Flex Fund celebrates a landmark achievement this week, surpassing its initial goal of raising $100 million in committed capital for Washington small businesses and nonprofits, particularly those in underrepresented communities.

Launched in June 2021, the Fund began with a $30 million investment of federal Coronavirus relief funds directed by Governor Jay Inslee to the Washington State Department of Commerce. It has since received support from Heritage Bank, JPMorgan Chase, Umpqua Bank and WaFd Bank. Two recent commitments from KeyBank and Wells Fargo have pushed the Fund past its fundraising goal, and the Fund now sits at a total of $105 million.

Commenting on the milestone, Governor Jay Inslee noted, "During the pandemic we heard from small businesses and nonprofits that having access to a low-interest loan program would fill an important financial gap in their ability to plan for recovery and growth. The Flex Fund is meeting that need. I appreciate all the banking partners and community organizations who are helping hundreds of businesses get back to work. Thanks to new commitments from KeyBank and Wells Fargo, hundreds more businesses can take advantage of this tool."   

"KeyBank is committed to the communities we serve, and we are proud to help expand access for small business loans to nonprofits and businesses in the State of Washington", said Brian Maddox, national leader of KeyBank's Community Development Financial Institutions (CDFI) team. "Our $14.5 million investment is a key part of our efforts to create more strategic partnerships with CDFIs across the nation and build on the success of our National Community Benefits Plan."

"We appreciate the opportunity to partner with CDFIs, technical assistance providers, and funders in Washington to provide much needed capital to small businesses and nonprofits that are the lifeblood of communities across the state," said Megan Teare, managing director in Wells Fargo's Community Lending and Investment group. "We understand that CDFIs are an important part of our financial ecosystem, particularly during times of recovery, and are pleased to add Washington to the list of eight state-level small business pandemic recovery funds supported by Wells Fargo, through more than $49 million in loan and grant capital."

With just over $57 million in loans distributed to date, there is still almost $45 million in loans with fixed, low-interest rates of 3% and 4% available for eligible small businesses and nonprofits. The application deadline for the Fund has also been extended, so businesses and nonprofits with fewer than 50 employees and annual revenues of less than $3 million can still pre-apply online through March 2023. If qualified, business owners will be matched with a community lender, who will assist the business owner throughout the application process and, if needed, connect them to additional advisory support.

The Small Business Flex Fund is a public-private partnership aimed at helping small businesses and nonprofits recover from the impacts of the COVID-19 pandemic, fueling them to grow and thrive again. "Access to capital is a challenge for many small business owners and nonprofits in underrepresented communities even in good times. The Small Business Flex Fund not only provides a vital opportunity to recover and rebuild from the pandemic, but also serves as a catalyst for growth and expansion," said Lisa Brown, Director of the Washington State Department of Commerce. "We thank KeyBank and Wells Fargo for making this milestone contribution that helped the Fund surpass its goal of $100 million."

The Flex Fund has already provided low-interest loans of up to $150,000 to nearly 700 small businesses and nonprofits. Almost 80% of the funded small businesses and nonprofits are diversely owned. Recipients have spent their loans on a variety of business-related expenses, including utilities, rent, marketing, building improvements, payroll and supplies. To learn more about some of the businesses and nonprofits that have benefitted from this program, visit SmallBusinessFlexFund.org/borrowers-stories.

The Fund works with a network of local Community Development Financial Institutions (CDFIs) and lenders who have decades of experience serving the under-resourced communities and underbanked businesses the Flex Fund aims to help. Six of these community lenders are originating loans for the Fund, including Ascendus, Business Impact NW, Craft3, Evergreen Business Capital Community Finance, OBee Credit Union and the National Development Council's Community Impact Loan Fund.

The lenders are supported by leading technical assistance and business support organizations, including Business Impact Northwest's Washington Women's Business Center and Veterans Business Outreach Center, Center for Inclusive Entrepreneurship (CIE), the Minority Business Development Agency – Tacoma Business Center, Sister Sky Inc., Ventures Nonprofit and Spokane Neighborhood Action Partners (SNAP) Financial Access.

For more information and to apply, visit SmallBusinessFlexFund.org.

The Small Business Flex Fund provides access to flexible, low-interest loans and business support services to small businesses and nonprofits across Washington. Supported by the Washington State Department of Commerce, the Fund is a collaborative partnership of local and national community finance organizations created to support Washington's smallest businesses and address the needs of historically under-resourced and underbanked communities. The Fund includes leaders from across sectors, including local community lenders, national and state-based nonprofit organizations, corporations, philanthropic donors, and investors — all of whom are passionate about an equitable recovery across the state.

SOURCE The Small Business Flex Fund