In Washington state, you may now earn dollar-for-dollar B&O tax credits up to $1 million when you contribute to the Equitable Access to Credit Program. This new program, authorized by the Washington State Legislature in 2022 and overseen by the Department of Commerce, creates a new revolving funding source of up to $8 million for non-credit union Community Development Financial Institutions (CDFIs) operating as non-profits to help widen access to credit for those who struggle to qualify for traditional financing. The scope for any contributions is up to $1 million per calendar year per contributor through 2027, and any entity with a B&O tax liability in Washington state is eligible to contribute simply by directing a portion of the B&O obligation already being paid by your bank. In addition, the contribution may be eligible for CRA credit by supporting underserved small businesses in the state. The Equitable Access to Credit Program helps broaden the spectrum of options for those who are often left outside of our banking system and, therefore, often struggle to access economic opportunities for themselves and their communities. Operating as non-profits, CDFIs are certified by the U.S. Department of Treasury but are not depositories. This means that, in order to offer financing to their customers, CDFIs fundraise contributions from traditional banks, philanthropic organizations and now, in Washington, efforts such as the Equitable Access to Credit Program. Contributions to this new effort will help provide financing services to those who are not yet qualified for support from a traditional bank, but it will put them on the path toward that goal. A specific focus of the Equitable Access to Credit Program is to invest in indigenous and rural communities with at least 65% of the value of all grants awarded to be allocated toward these priorities. Equitable Access to Credit Program BY PATTI KIBBE, PRESIDENT & CEO, EVERGREEN BUSINESS CAPITAL COMMUNITY FINANCE AND EVERGREEN BUSINESS CAPITAL 4 | CURRENCY
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