The Seattle Foundation will make a $1 million investment in the "Grow Seattle-King County Fund," helping to create an $8 million revolving-loan fund for Seattle and King County small businesses.

The Grow Seattle-King County Fund, a partnership with King County and the City of Seattle, will foster entrepreneurship, create jobs and increase investment in Seattle and King County small businesses. The fund could reach an estimated 76 businesses, create or retain more than 1,800 jobs and generate a total investment in excess of $20 million.

The investment is part of the Foundation's strategy to increase the capital, financial viability and stability of businesses in low-income neighborhoods. Small businesses can be a major economic engine in economically distressed neighborhoods. They create jobs, drive investment and foster neighborhood revitalization. Yet—even in good economic times—these small businesses have difficulty securing affordable loans from mainstream financial institutions. Not-for-profit community development financial institutions (CDFIs) can step in to supply critical financing and economic development support to small businesses in underserved neighborhoods.

With compelling research on the effectiveness of CDFIs, The Seattle Foundation has worked over the past 18 months to craft its first mission investment to a CDFI. It recently announced this $1 million investment in the National Development Council (NDC), the oldest national CDFI in the U.S., to develop the Grow Seattle-King County Fund. The Fund will offer credit to small businesses at low interest rates, allowing businesses to increase profits to reinvest in plant, equipment, jobs and working capital. As loans are repaid, the Fund will use the repayments to make additional loans to other small businesses that will, in turn, create more jobs in King County.

This is how it will work:  

• King County and the City of Seattle will market the program, identify prospective borrowers and refer them to the Grow Seattle-King County Fund.
   
• NDC will determine the borrower's eligibility, underwrite and package loans, close and service loans, work with the borrower as needed and troubleshoot problem loans.
   
• The Seattle Foundation will earn a 1% preferred return on investment and receive quarterly reports that detail the performance of the Fund's portfolio and update the status of each loan.

For more information and details please visit the Seattle Foundation web site.

To view our available grants directory please click here.

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