Loans
Washington CASH offers two kinds of loans: microloans and Business Builder Loans.
Microloans
Washington CASH’s microloans are specifically designed for startups or new (in business less than one year) self-employment ventures owned by women with low incomes, people with disabilities, or other underserved individuals.
To be eligible for a microloan through this program, participants must first complete our free nine-session business training course and be a member of a certified peer lending group of at least five people.
The current interest rate for microloans is prime plus 4% as determined by the Wall Street Journal. Initial loans can be a maximum of $500 and must be repaid within six months. Subsequent loans can increase in stages up to $5,000 once a credit record has been established. This incremental approach to lending helps keep payments at a manageable level, allows businesses to grow at an even, controlled pace, and assists clients in building a solid credit record. No collateral or credit is required for participants who are part of a peer lending group. Loans can be used for any business purpose, including purchasing equipment, launching an e-commerce Web site, advertising, or obtaining raw materials.
Business Builder Loans
Business Builder Loans are designed for entrepreneurs with businesses that are at least a year old and ready to expand. These loans, which range from $5,000 to $35,000, have fixed interest rates and terms from 24 to 60 months. Loans can be used for business purposes only.
In addition to the capital, clients also receive valuable business training, networking opportunities, and practical advice, including: mentoring once a quarter from a small business expert; access to Washington CASH’s computer lab and resource center; one-on-one meetings with Washington CASH staff; access to advanced business workshops; access to entrepreneur programs at Seattle University and the University of Washington; and access to the annual Business Showcase.
To be eligible for a Business Builder Loan, applicants must:
- Be a U.S. citizen and at least 21 years of age.
- Have a current business checking account and license.
- Have a business that has been operating in Washington for at least one year, or have extensive experience in this line of work and/or an alternate source of income.
- Have limited or no access to traditional business lenders.
- Have sufficient collateral to cover the loan amount.
- Have a passion for the business and be dedicated to its success.