CCD’s initial loan fund, organized
in 1997, was funded through Community Development
Block Grant (CDBG) funds awarded to the
City of Seattle. When the City of Seattle
decided to privatize its loan fund, CCD
won the award. CCD raised additional funds
through private contributions to provide
business assistance in conjunction with
its loans.
Since our inception in 1997, CCD has provided
loans totaling over $15.3 million to 388
unbankable small businesses. These businesses
were responsible for creating or sustaining
more than 1,200 jobs, more than 60% of which
went to persons of low-to-moderate income.
USDA Intermediary
Relending Program (IRP)
Community Capital Development became administrator
of this fund in 2002. The purpose of the
Intermediary Relending Program (IRP) is
to finance business facilities and community
development projects in rural areas. This
Fund provides loans of 75% of a project
up to $250,000 in seven (7) Washington State
counties, including: Whatcom, Skagit, Snohomish,
King, Pierce, Island, and San Juan.
Small Business
Administration Pre-Qualification Program,
7(a) Loan Program, Microloan Program
Since May 1998, CCD has served as a financial
intermediary for the Small Business Administration’s
(SBA) Minority and Women’s Pre-Qualification
Loan Programs. Additionally, in December
1999, the SBA and the Washington State Banking
Superintendent approved CCD as a certified
SBA 7(a) Lender for the State of Washington.
CCD has successfully raised loan capital
funding for our 7(a) program from the U.S.
Department of the Treasury’s CDFI
Fund. In 2002, CCD became the administrator
of the SBA Microloan Fund. This fund can
lend entrepreneurs up to $35,000 for start-up
and small business expansion. CCD administers
this fund in 23 Washington State counties.
Child Care Micro-Loan
Program
CCD provides in-home childcare providers
and child care centers with State-funded
micro-loans for start-up costs, expansion,
equipment and supplies and operating expenses.
CCD is designated to administer loans for
this program in North and East King County
and the counties of Snohomish, Kitsap, Skagit,
Kittitas, Island, and Whatcom. Funds are
made available through the Washington State
Department of Commerce, Trade, and Economic
Development and the Department of Social
and Health Services.
Latino, Women,
and other Minority Loan Fund (LWM Fund)
CCD provides small business loans up to
$35,000 to the Latino business community,
women business owners, the Native American
community, and other minority business owners
through the newly formed Latino, Women,
and Other minority Loan Fund also known
as the LWM Fund. The Fund was initiated
through a contribution including an administrative
grant from Whidbey Island Bank, a local
community lender.
Equity Initiatives
CCD is a participant in the Association’s
Rural Investment Committee as part of its
initiative to bring social venture capital
to Washington State’s rural and under-served
areas and has staff who are trained on equity
investing as a tool for economic development.
CCD is in the process of creating a pilot
equity fund that will serve emerging businesses
in King County and possibly one other county,
initially, depending on the level of starting
capital. Later, a larger fund will be raised
that may serve rural and under-served areas.
So far, support has been received from CDFI
and another non-profit entity toward the
pilot phase funding goal, with 1/5 of funds
now secured.
CCD is serving as a consultant to a newly
forming, Clean Energy Equity Fund, still
in the early stage of feasibility research.
If the feasibility study analysis is positive,
a venture capital pilot fund will be established
that will invest in under-served businesses,
including those which may have received
technical assistance through this RBEG program.
We expect the equity investments will complement
to debt financing, including USDA IRP funds
invested, by CCD.
