Tacoma Economic Development Department

Community & Economic Development Department Business Loan Programs (as of September 2011)

The Community and Economic Development Department has several loan programs available to assist businesses and developers to stimulate overall economic development with creation and/or retention of jobs as a primary objective. The publicly funded programs are designed to support existing businesses with expansion efforts or to finance development projects including acquisition of real estate, new construction, rehabilitation, leasehold improvements, equipment and working capital.

These programs are generally intended to provide partial financing with financial institutions normally providing the bulk of the financing for each project. These funds are not designed as a substitute for conventional lending sources, but to fill the gaps in the existing financial market or to attract capital which otherwise would not be available. With each project, the borrower must demonstrate sufficient cash flow to cover the additional debt, and all loans must have full collateral coverage.

Loan volume is dependent on need, funds available, application processing capacity, and marketing of loan programs. Funding is presently available in each of the programs, and as the loans are repaid, via either monthly payments or full payoff; the funds are then available to be re-loaned to the community. A targeted marketing approach is utilized due to limited funding capacity. Outreach is made to lenders, brokers, CPAs, economic development partners, and through Business Retention/Expansion visits in partnership with the Economic Development Board. Programs, eligible use of funds, criteria and available funding are as follows:

HUD Section 108 Loans (Council approval) Land/Building, Equipment Compliance w/CDBG national Objectives Approximately $8 million available

CDBG Float Loan (Council approval) Land/Building, Equipment Compliance w/CDBG national Objectives Approximately $1 million available

Business Revolving Loan Fund (TCRA) $25,000 - $250,000 per project Land/Building, Equipment, Working Capital 1 job created/retained per $35,000 Approximately $25,000 available

Title IX Revolving Loan Fund (TCRA) $25,000 - $250,000 per project Land/Building, Equipment, Working Capital 1 job created per $35,000 Approximately $250,000 available

Fire Safety Loan Fund (TCRA) (Pilot Program) $5,000 - $50,000 per project Fire Code Related Items $250,000 available

Grow America Fund SBA 7(a) (in partnership with NDC) $100,000 - $5,000,000 per project Land/Building, Equipment, Working Capital Approximately $3 million available

Brownfields Cleanup Revolving Loan Program (in partnership with WA Dept. of Commerce) Cleanup of hazardous substances Approximately $2,000,000 available