Small business grant and loan funding through the Washington State Department of Commerce
At the Washington State Department of Commerce, we believe entrepreneurs and small business owners drive our economy. The Office of Economic Development and Competitiveness (OEDC) is just one of the divisions within Commerce that is hard at work helping fuel the entrepreneurial landscape.
Those efforts are paying off. A recent study reported by Simply, LLC, named Washington State #1 in the nation for entrepreneurs in 2025. At Commerce, our mission is to strengthen communities and that includes helping small businesses grow so people can live and work in places with a lower cost of living and a higher quality of life.
Part of the work we undertake is to fuel business funding. Small business owners and those who help them face a conundrum to securing the funding to start or grow an enterprise. Whether through grants or loans, the cash infused into an organization can make a pivotal difference – in the long-term success of a business or specific project.
Help to receive grant funding
Grant funds are one way that Commerce helps grow jobs and the economy. Grants support a range of activities – specific initiatives, business expansion, innovative research, and more. Grants require no repayment, and depending on the grant, offer long-term, sustainable funding to help organizations grow programs and infrastructure. Progress is monitored to ensure achievement of milestone and final objectives. OEDC grants currently include the following:
- The Evergreen Manufacturing Growth Grant: This grant program, with a total of $2 million in funds, is specifically designed to support the development of manufacturing jobs, research and development jobs, and regional cluster acceleration strategies, by fostering an environment of innovation and entrepreneurship. There are two application types available for this program: one form designated for individual businesses, and a second form designated for innovation cluster organizations. Read more about past grant recipients and projects from the 2024 awardee announcement.
- The Industrial Site Readiness Grant: The Industrial Site Readiness grant is designed to enhance large scale site development by providing funding for various site readiness services to boost the state’s portfolio of project-ready sites and attract new investment. The program offers between $200,000 and $500,000 for awardees and, while not open to individual businesses, is open to public entities statewide, including city and county governments, port districts, and Native American Tribal governments. Read more about past grant recipients and projects from the 2024 awardee announcement.
- The Industrial Symbiosis Grant: These grants support collaborative projects advancing the circular economy, funding efforts to find beneficial uses for industrial waste. Through this signature grant program, Commerce annually funds innovative efforts ranging from research and development to on-the-ground implementation. Grant opportunities are typically announced, mid-year. Learn more by visiting the Choose Washington State Industrial Symbiosis program page.
- STEP Grants: The U.S. Small Business Administration (SBA) State Trade Expansion Program awarded Commerce funding to help state small businesses grow through exporting. Qualifying companies who are new to exports or entering new markets can get up to $10,000 to offset expenses. Eligible reimbursements include expenses for trade show or trade mission fees, airfare, interpreter and translation services, and more. Learn more and connect with the team on the Export Voucher program landing page.
Help to secure business loans
Unlike grants, business loans must be re-paid and small business owners often feel like they are in a catch-22 dilemma. It takes money – and collateral – to secure a business loan, but you need a loan to get that money. This paradox magnifies among owners of very small businesses (VSBs), businesses owned by socially and economically disadvantaged individuals (SEDIs), and businesses in historically under-banked and under-resourced communities.
To combat these problems, Commerce developed several programs to serve the needs of small businesses across the state. This funding is provided through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). These loan programs aim to promote entrepreneurship, support small business ownership, and increase the flow of capital in underserved communities.
Working with private partners, Commerce expects to leverage this private capital through identified Community Development Financial Institutions (CDFIs) to expand lending and investment in small businesses and entrepreneurship, build small business ecosystems and create jobs. Whether you own a small business, or you and your organization support them, it is helpful to understand these new loan programs.
- Small Business Flex Fund 2 (Micro Loan Program): The program works with participating Community Development Financial Institutions (CDFIs) to fund capital needs among the smallest businesses and non-profit organizations in Washington. It focuses on the most under-resourced businesses in under-banked communities. Your application goes through the program’s web portal and matches your business with a participating lender to finalize interest rates and terms. The program is administered by Calvert Impact Small Business and Grow America. They serve businesses and nonprofits with 50 or fewer employees and up to $5 million in revenue.
- Owner-Occupied Commercial Real-Estate Loan Program (CRE): CRE expands access to capital and reduces lending risk while lowering loan costs for small businesses and non-profit organizations with a subsidized loan. The program helps small businesses qualify for financing and lowers your business risk for owner-occupied real estate loans. This loan is for you if you are looking for owner-occupied commercial real estate loans for such things as tenant improvements, construction, purchase or refinance. The program is administered by Heritage Bank (HBCDE, LLC). It offers companion loans with SSBCI funds and targets loans up to $5 million with 10-year terms.
- Collateral Support Program (CSP): The CSP complements the SBA’s 504 Loan Program. These funds cover short-term construction loans and offer bridge loan funds. The CSP is administered by Evergreen Business Capital Community Finance (EBCCF), a nonprofit lender offering financing solutions for small businesses in the Pacific Northwest.
Learn More
Start Up Washington is the Small Business Training & Education Center administered by the Washington State Department of Commerce. This is a clearinghouse of accurate, actionable information entrepreneurs and business owners can use to build a successful enterprise in Washington State. Learn more by visiting StartUp Washington’s Access to Capital section on the website.