Project Qualifications
The Washington State Rural Washington Loan Fund (RWLF) provides gap financing to businesses that will create new jobs or retain existing jobs, particularly for lower-income persons. Only businesses in nonentitlement areas of the state (see map below) are eligible for these loans. "Gap" is defined as that portion of a project which cannot be financed through other sources, but which is the last portion needed before the overall investment can occur. Priority is given to timber-dependent and distressed area projects.

Priority Projects

• Manufacturing or other industrial production
• Agricultural development or food processing
• Aquaculture development or seafood processing
• Development or improved utilization of natural resources
• Tourism facilities
• Transportation or freight facilities
• Other activities which represent new technology or a type of economic enterprise needed to diversify the economic base of an area
• Retail or service enterprises that will expand the community’s economic base rather than primarily redistribute the existing customer base.

Ineligible Projects

• RWLF will not finance a business with a negative net worth or when funds would be used for the reduction of an existing lender’s risk position or to replace owner’s equity.
• Under statute, the program may not finance projects which directly or indirectly assist in the development of a shopping mall.

Funds Available

• Loan amount is determined by the "gap" and competitive factors, and cannot exceed one-third of the total project costs.
• Loans up to $1,000,000 with Director’s approval.
• Funds can be lent for the acquisition, engineering, improvement, rehabilitation, construction, operation, or maintenance of any property, real or personal, that is used or is suitable for use by an economic enterprise. Working capital term loans are eligible costs.

Job Creation/Retention

• The need for assistance is appropriate given the type of the project.
• The project will create jobs, and if qualified lower-income candidates are available, the majority of the jobs must be made available to them.  Retention of jobs can also be considered as a qualifying factor.
• Maximum lending amount will be no more than $35,000 per job created/retained.

Updated December 2008