Washington State Department of Community, Trade and Economic Development

1
Washington State Department of Community,Trade
and Economic Development (Department of Commerce)
Washington Economic Development Association
Spring Conference Focusing on the Future
Kenny Spain North Central Washington Regional
Services Manager Sally Harris Northwest
Washington Regional Services Manager
2
Todays Program

• Regional Services
• CERB Update
• Team Washington
• Local Assistance
• State Finance Programs
• Process
• Services
• Loan Guarantee Options

3
(No Transcript)
4
ITED Regional Managers Industry Expertise
60 to 80 of all new jobs are created by existing
businesses
Aerospace Sally Harris
Marine Technologies Lynn Longan
Clean Technologies Terry Lawhead
Forest Products Brent Bahrenburg
Agriculture/Food Processing Bob Sandoval

Financial Assistance Kenny Spain, Chris
Greenlee, Kraig Kushar
Research Spencer Cohen
5
ITED Regional Services
Job Creation
6
Community Economic Revitalization Board

• 2009-2011 Updates
• Wages
• Maximum changes
• Rural communities in urban counties
• Process
• Applicant driven process
• Intensive advance Regional and CERB staff work
• Board meets six times a year
• CERB Members make decision at meeting

7
Community Economic Revitalization Board

8
Hamilton Today
A Successful Expansion in the Town of Hamilton
Janicki Industries is a manufacturer of composite
tooling for aerospace, marine, energy and
transportation applications.
The family-owned company needed to expand in
order to accommodate increased demand for its
composite aerospace tooling. The town of Hamilton
in Skagit county was selected as the expansion
site.

• CTED approved the Old Growth Fund to fund the
  water system design
• Skagit County Sales and Use money to move water
  system
• Fiber delivered through the PUD and USDA
• CERB provided the grant and loan to Hamilton to
  upgrade the system
• Office of Regulatory Assistance provided permit
  assistance
• The company built a 150,000 square foot facility
  with two 5-axis mills
• Net result was private investment of 24.8
  million and 288 jobs

9
Team Washington
The Power of Working Together
Washington Manufacturing Services (WMS)
Washington Technology Center (WTC)
Procurement Technical Assistance Centers (PTAC)
Associate Development Organizations (ADO)
Washington State Microenterprise Association
(WSMA)
WorkSource Centers
Community and Technical Colleges
Small Business Development Centers (SBDC)
Economic Development Administration (EDA)
Employment Security Department
Washington Economic Development Finance Authority
(WEDFA)
Office of Minority Womens Business Enterprises
Department of Labor Industry (LI)
Department of Licensing (DOL)
Governors Office of Regulatory Assistance
U. S. Department of Agriculture Rural Development
Department of Revenue (DOR)
Secretary of State
10
ITED Local Assistance
11
(No Transcript)
12
Washington State Loan Programs

• Rural Washington Loan Fund (HUD)
• CDBG Float Loans (HUD)
• Section-108 Loan Guarantee (HUD)
• Brownfields Revolving Loan Program (EPA)
• Forest Products Loan Program (USDA)
• Coastal Loan Programs (EDA)
• Childcare Facility Fund (DOL HHS)

13
Lending Program Process

• Washingtons constitution does not allow the
  lending of the states credit. As a result
• Use various federal program monies to make
  business loans
• Lend in partnership with other private and
  non-profit lenders
• Help local revolving funds and lenders structure
  financing deals
• Federal monies to CTED come from five different
  federal agencies

14
Business Finance Services

• Deal structuring
• Loan packaging
• Negotiating, advocacy referral (SCORE, SBDC
  EDCs)
• Partnership building- private, local, state and
  federal loan programs
• Helping attract private capital to leverage
  public loan funds

15
Rural Washington Loan Fund

• 75,000 to 1,000,000
• 4.5 million available
• Fixed at prime, up to 10 year term
• Requires 21 match
• Uses federal (CDBG) monies
• Case Study H2 Pre-cast Inc.

16
CDBG Float Loan (HUD)

• 16 million total
• Max term 30 months, 50 of prime rate
• Requires irrevocable letter of credit
• Success
• Cardinal Glass

17
HUD Section - 108 Loan Guarantee

• Limit 7,000,000 per jurisdiction
• Term 20 years
• Ocean Shores Shilo Inn

18
Forest Products Loan Fund

• 75,000 to 1 million loans
• 5-10 years, usually at prime fixed
• Value-added wood products
• Case Study Snow Mountain Company, Anacortes

19
Brownfields Redevelopment Loan Fund

• 4.5 million total available (statewide)
• 5 years, 2-4 interest rate
• Partnership with Dept. of Ecology
• Site must be EPA approved
• Davis Bacon rules apply
• Case Study
• Rainier Court

20
Child Care Facility Fund

• Increase the availability of quality, affordable,
  convenient child care
• Grants/loans for employers and child care
  businesses
• 100,000 max loan/ 25,000 grant potential
• Start up or expansion, capital improvements,
  health and safety equipment and potential for
  short term operational costs

21
Key Finance Success

• Identified, developed and funded (through grants
  and loans) 105 local economic development
  projects in fiscal year 2008. Invested more than
  76.6 million of state funds, leveraging 1.4
  billion in local and private funds, creating or
  retaining an estimated 7,271 jobs.

22
Thank You

• Kenny Spain
• North Central Washington
• Regional Services Manager
• International Trade and Economic Development
• 509-393-6373
• kennys_at_cted.wa.gov
• Sally Harris
• Northwest Regional Services Manager
• International Trade and Economic Development
• 206-276-0059
• sallyh_at_cted.wa.gov