Accessing Capital in the Spokane Region
There are a variety of options when it comes to financing your small business. In addition to traditional loans, opportunities range from grants and bonds to investor-based venture capital.
Conventional Bank Loans, SBA Loans
Federal government grants are available to non-commercial organizations in areas such as medicine, education, scientific research and technology development. Some business grants are available through state and local programs, non-profi t organizations and other groups.
Microenterprise Business Development
SNAP assists low to moderate income individuals starting or expanding a business. Services include workshops, consulting, start-up or business expansion loans from $500 to $25,000 at competitive interest rates, and post-loan, post-program business consulting services to ensure continued financial success.
U.S. Small Business Administration (SBA)
SBA sets the guidelines for loans which are made by partners (lenders, community development organizations, and microlending institutions). SBA guarantees that these loans will be repaid, thus eliminating someof the risk to lending partners. When a business applies for a SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guarantee.
Industrial Revenue Bonds
Tax-Exempt Industrial Revenue Bonds, also known as Public Activity Bonds, are primarily used to finance the construction of manufacturing facilities and new capital equipment. Project costs cannot exceed $10 million; capital expenditure by the company in the local jurisdiction cannot exceed $20 million total. Issuance costs on projects less than $750,000 can make other financing options more attractive. Tax-exempt bonds typically have interest rates below the prime lending rate.
Early Stage/Seed/Angel Financing:
The Spokane Angel Alliance (SAA)
SAA is an organization of individually accredited investors and corporate members in the Inland Northwest. Members make their own individual investments, but meet regularly to shear about promising young companies and evaluate investment opportunities.
Keiretsu Forum Spokane Inland
In 2013, the Keiretsu Forum Northwest region had outstanding membership growth of 85 new members and collective funding results of over $21.2m invested in 34 companies.
Through introductions made to regional investment groups, loans from the Technology Growth Fund (TGF), awards through the Energy Innovation Fund, or research grants from the federal SBIR/STTR program, Innovate WA helps technology startups have the financial backing to succeed.
Inland TechStart Fund
The Inland TechStart Fund (ITF) invests seed capital in early stage companies and entrepreneurs with great ideas. Experienced investors and entrepreneurs invest their own capital, along with shareholders' capital and share knowledge. Focus is on technology based companies – software, internet, entertainment, energy, healthcare, telecommunications and clean technologies.
Community Sourced Capital
With a mission to build innovative financial systems for communities, this organization provides funding for startups that will have a beneficial impact on their communities.