Chamber helps businesses cross financing gap

Finding ways to fund growth and expansion can be challenging for any small business. Large-scale financial institutions aren’t usually interested in funding loans under $50,000 and outside of a crowdsourcing campaign or hitting up friends, there are few options.

Fund Local hopes to fill that funding gap. Developed jointly by the Washington State Department of Commerce and Community Sourced Capital and available through the Wahkiakum Chamber of Commerce, Fund Local allows businesses to secure funding from local customers and residents, or “squareholders” as they are called in the program. Each “square” can be purchased for $50.

Fund Local is easy, yet powerful. It only takes a few minutes online to apply and companies with a history of revenue traction (the no-interest loan needs to be paid back within three years) are considered strong candidates. If a company is admitted to the program, they have 28 days to make their pitch to customers, clients, and the community in order to meet or beat their investment goal. If the goal is reached, the company receives a check in a couple of days and they can get to work expanding and growing their business. The program cost is $250 to launch the campaign and a $50 membership fee each month for the term of the loan.

“This is a great way for small businesses that are important community assets to source funds for their expansions, renovations, or major initiatives,” said Maury Forman, senior manager for the Department of Commerce’s Small Business, Entrepreneurship, and Rural Strategies program. “While all investments carry some risk, this is an excellent program for local companies and local residents to build economic wealth in their own communities, which is beneficial to everyone.”

For more information contact the Wahkiakum Chamber of Commerce at 360-795-9996 or visit the Startup365 Washington website at http://startup.choosewashingtonstate.com/fund-local .

Commerce is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington. For more information, visit http://www.commerece.wa.gov.