washington state department of community, trade and economic development (department of commerce)...
TRANSCRIPT
Washington State Department of Community,Trade and Economic Development (Department of Commerce)
Washington Economic Development Association Spring Conference
Focusing on the Future
Kenny Spain – North Central Washington Regional Services Manager
Sally Harris – Northwest Washington Regional Services Manager
Today’s Program • Regional Services
• CERB Update• Team Washington• Local Assistance
• State Finance Programs• Process• Services• Loan & Guarantee Options
ITED Regional Managers Industry Expertise
Aerospace – Sally Harris
60 to 80% of all new jobs are created by existing businesses
$
Marine Technologies – Lynn Longan
Clean Technologies – Terry Lawhead
Forest Products – Brent Bahrenburg
Agriculture/Food Processing – Bob Sandoval
Financial Assistance – Kenny Spain, Chris Greenlee, Kraig Kushar
Research – Spencer Cohen
ITED Regional Services
Team Washington CERB
FinancialPackaging
Local Assistance
Research
Job Creation
Community Economic Revitalization Board
• 2009-2011 Updates• Wages• Maximum changes• Rural communities in urban counties
• Process• Applicant driven process• Intensive advance Regional and CERB staff work • Board meets six times a year• CERB Members make decision at meeting
Community Economic Revitalization Board
Team WashingtonThe Power of Working Together
Washington Manufacturing
Services (WMS)
Washington Economic
Development Finance Authority
(WEDFA)
Economic Development
Administration (EDA)
WorkSource Centers
Washington Technology Center
(WTC)
U. S. Department of Agriculture Rural
Development
Community and Technical Colleges
Department of Labor & Industry
(L&I)Governor’s Office
of Regulatory Assistance
Employment Security
Department
Department of Licensing (DOL)
Secretary of State
Small Business Development
Centers (SBDC)
Procurement Technical
Assistance Centers (PTAC)
Associate Development Organizations
(ADO)
Department of Revenue (DOR)
Office of Minority & Women’s Business
Enterprises
Washington State Microenterprise
Association (WSMA)
ITED Local Assistance
Washington State Loan Programs
• Rural Washington Loan Fund (HUD)• CDBG Float Loans (HUD)• Section-108 Loan Guarantee (HUD)• Brownfields Revolving Loan Program (EPA)• Forest Products Loan Program (USDA)• Coastal Loan Programs (EDA)• Childcare Facility Fund (DOL & HHS)
Lending Program Process
Washington’s constitution does not allow the lending of the state’s credit. As a result:• Use various federal program monies to make business
loans• Lend in partnership with other private and non-profit
lenders• Help local revolving funds and lenders structure
financing deals • Federal monies to CTED come from five different
federal agencies
Business Finance Services
• Deal structuring• Loan packaging• Negotiating, advocacy & referral (SCORE, SBDC &
EDCs)• Partnership building- private, local, state and
federal loan programs• Helping attract private capital to leverage public
loan funds
Rural Washington Loan Fund
• $75,000 to $1,000,000
• $4.5 million available • Fixed at prime, up to 10
year term • Requires 2:1 match• Uses federal (CDBG)
monies• Case Study: H2 Pre-cast
Inc.
CDBG Float Loan (HUD)• $16 million total • Max term 30 months, 50%
of prime rate• Requires irrevocable letter
of credit
Success:
Cardinal Glass
HUD Section - 108 Loan Guarantee
• Limit $7,000,000 per jurisdiction• Term 20 years• Ocean Shores Shilo Inn
Forest Products Loan Fund• $75,000 to $1 million loans• 5-10 years, usually at prime fixed• Value-added wood products• Case Study: Snow Mountain Company, Anacortes
Brownfields Redevelopment Loan Fund
• $4.5 million total available (statewide)
• 5 years, 2-4% interest rate • Partnership with Dept. of
Ecology• Site must be EPA approved• Davis Bacon rules apply
Case Study: Rainier Court
Child Care Facility Fund• Increase the availability of
quality, affordable, convenient child care
• Grants/loans for employers and child care businesses
• $100,000 max loan/ $25,000 grant potential
• Start up or expansion, capital improvements, health and safety equipment and potential for short term operational costs
Key Finance Success
• Identified, developed and funded (through grants and loans) 105 local economic development projects in fiscal year 2008. Invested more than $76.6 million of state funds, leveraging $1.4 billion in local and private funds, creating or retaining an estimated 7,271 jobs.
Thank You
Kenny Spain
North Central Washington
Regional Services Manager
International Trade and Economic Development
509-393-6373
Sally Harris
Northwest Regional Services Manager
International Trade and Economic Development
206-276-0059