City of Seattle opens access to capital for Seattle small businesses
Not every small business has equitable access to capital, which makes some businesses more vulnerable to predatory lending. The Seattle Office of Economic Development, in partnership with Grow America and Mayor Katie Wilson, has revamped its Small Business Capital Access Program to provide affordable financing to Seattle small businesses at a new, lower fixed interest rate.
“It isn’t easy for small businesses to operate and grow anywhere, and Seattle is no exception. That’s why I’m working to make it as simple and affordable as possible for our existing businesses to access the tools and financing they need to stay open and continue growing,” said Mayor Katie Wilson. “Seattle’s small businesses give our neighborhoods their character and make them vibrant and active. They are the backbone of our economy and major employers. I’m proud that my Office of Economic Development can offer this kind of support to the businesses that need it.”
Rising costs of rent, goods and services, and geopolitical conditions like shipping and tariffs create barriers for small businesses to predictably plan and operate a business. CAP helps provide more certainty about borrowing, keeping payments steady for the life of the loan. Eligible small business loans can be used for a full range of business operating needs such as payroll, rent, utilities, supplies, and other day-to-day expenses.
“We are invested in helping business owners get the financing and support they need, even if they’ve struggled with traditional financing in the past,” said Beto Yarce, Director for the Seattle Office of Economic Development. “By investing in our local businesses and creating pathways to more affordable capital, our goal is to create a more equitable and financially sustainable Seattle. When small businesses thrive, we all thrive.”
Six participating community lenders made up of local Community Development Financial Institutions and credit unions, can help qualified businesses access loans of up to $350,000 at a fixed 4% interest rate for the life of the loan. Once an application is approved, there is no action needed from the business if they qualify, because the lender completes the CAP application automatically. This new model is intended to connect business owners, especially those who haven’t had equitable access to financial services, to greater cost savings through a lower, fixed interest rate.
“The Small Business Capital Access Program offers a ‘first-in-the-nation’ collaboration between local government and community lenders to lower the costs on financing to small businesses,” said Chuck Depew, Senior Director of Grow America. “While directing funds via lenders, the program lowers financing costs to businesses that provide long-term operating savings.”
The CAP model offers an affordable alternative to other mainstream lending options, allowing small business owners to borrow the capital they need to grow their business.
Since its launch in 2021, CAP has distributed nearly $7 million to 331 small businesses throughout the city, unlocking more than $27.8 million in affordable financing. An earlier version of the program offered borrowers a $30,000 principal paydown.
What people are saying
Suroj Dangol, Owner of Kathmandu MoMoCha and CAP participant
“At that time, we needed the help and the Capital Access Program came at the perfect time,” Dangol explained. “That helped our business keep moving.”
Jiaxin Wang, Co-owner of Ooink and CAP participant
“The capital gave us time to think out of the box to figure out, ‘Oh there is more opportunity. We can do this, we can do that.’ But if every day I work here, I cannot think of where our product can go.”
About the program partners
Seattle Office of Economic Development
The Seattle Office of Economic Development seeks to strike a balance between supporting our local economy and competing in the global economy. Our work improves regional economic development, city policy priorities, and city operations. Through collaborative partnerships with the public, private, and philanthropic sectors our investments, policies, and programs will create more jobs, wealth and vibrancy.
To learn more about the Capital Access Program, visit https://www.seattle.gov/economic-development/grants-and-funding/capital-access-program.
Grow America
Founded as a national nonprofit in 1969, Grow America, formerly NDC, has worked for over half a century fulfilling our mission to increase the flow of capital for investment in low-income communities. We direct capital to support the development and preservation of affordable housing, the creation of jobs through training and small business lending, and the advancement of livable communities through investment in social infrastructure. Learn more at growamerica.org.
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