Community Reinvestment Plan Loan Guarantee Fund - Lender Participation

Background
In 2022, the Washington State Legislature set aside $200 million in the Community Reinvestment Account for the Department of Commerce to invest in communities disproportionately harmed by historical design and enforcement of state and federal criminal laws and penalties for drug possessions. The Legislature directed the agency to develop a Community Reinvestment Plan (CRP) to guide funding distribution from the Community Reinvestment Account.
The final report outlines recommendations to implement $200 million in state resources that the Legislature appropriated to Commerce, in collaboration with state and community partners, including the Office of Equity, will distribute the funds through 17 grant programs falling across four program areas: economic development, civil and criminal legal assistance, community-based violence intervention and prevention services, and reentry services, in alignment with recommendations detailed in the final report.
The office of Economic Development and competitiveness (OEDC) in Commerce will coordinate the implementation of the Community Reinvestment 17 Million dollar Loan Guarantee Fund. The Loan Guarantee Fund is a pool of resources that provides funding and loan loss reserve to lenders across the state, including Community Development Financial Institutions (CDIFIs), local municipalities, and non-profit organizations in Washington.

Work Details
The Loan Guarantee Fund is a pool of resources that provides funding and loan loss reserves to lenders across the state, including CDFIs, local municipalities, and non-profit organizations in WA. Lender approval is based on lending history, underwriting processes, track record of serving or commitment to serve the intended beneficiaries, and reported loan volume, loan averages, and assistance in tracking committed guarantees.
The initial fund is $17 million, with $5 million allocated for new construction loans, $5 million for no collateral loans for business startups and scale-up, $6 million for loans for construction expansions, DADUs, or additions, and $1 million for consumer loans (refinancing predatory loans, auto refinancing, purchases, or emergencies). The CRP report recommends that 64% of the allocations be distributed to target areas in six priority counties: Clark, King, Pierce, Snohomish, Spokane, Yakima. Services should be prioritized for Black, Indigenous and Latino families with children in target areas of opportunity.

Period of Performance
Responses are due by April 14th, 2024.

Place of Performance
The contract will be performed across Washington State.