Building a Revolving Loan Fund and Accessing New Market Tax Credits (NMTC)
SNEDA began a relatively small loan program last year. With assistance from Northwest Regional Facilitators (NRF), we made four child-care business loans, totaling $18,000. This year Spokane’s Community Development committee recommended that the City Council allocate $175,000 to SNEDA’s revolving loan fund. The addition of these funds will bring the total loan fund to almost $250,000. This allows us to make loans of $20,000 to $30,000 for job creation targeting low to moderate-income people in Spokane’s neighborhoods.
A major focus will be to provide participatory financing with local banks where our loan makes an otherwise non-bankable deal bankable. We expect to have access to these funds before September 2003. In the absence of these funds, SNEDA is developing relationships with non-traditional lenders from outside the area who are willing to participate in loans to businesses in the SNEDA area.
The Treasury - Community Development Financial Institute (CDFI) announced the award of $2.5 billion in tax credits under its NMTC program. The credits were allocated to 66 organizations in the country; some have national service areas, which include Washington State. The tax credits are designed to make business investments less risky for the investor, while providing a higher net return, thus increasing both the availability and affordability of equity and debt financing for our local businesses. SNEDA, as Spokane’s only certified Community Development Entity (CDE), is eligible to participate with these national NMTC award recipients who wish to invest in the SNEDA investment area. Investors with a business or commercial real estate project pending that could benefit from lowered risk and enhanced return, please contact Nick Landis (or Eric Loewe) at (509) 444-7633.
NEW FACES
SNEDA welcomes new AmeriCorps*VISTA member Mark Coyne as NE Community Center’s new Hillyard Revitalization Development Specialist. Mark is a graduate of Eastern Washington University with business degrees in Marketing, Human Resource Management, and General Management. He is currently involved with neighborhood development for Hillyard. Much of his work is focused on the Heritage Museum, youth activities, neighborhood clean-up programs, economic development and neighborhood planning.
SNEDA also welcomes new board member Jean Farmer, Interim Executive Director of Northeast Community Center Association (NECCA). Jean was Assistant Director for over 14 years. She will replace Bill Dillon who recently resigned. Bill was instrumental in securing the Entrepreneur Corps Grant for SNEDA from the Corporation for National Service.
KEEPING CURRENT
Recommended reading by VISTA Leader, Don Hornbeck, "Cannibals with Forks: The Triple Bottom Line for 21st Century Business" by John Elkington, New Society Publishers, 1998."John Elkington forthrightly and clearly conveys that sustainability, as a new value, will be the price of entry that society will demand for business success in the 21st century. I believe this is an essential message for all forward thinking businesses." Deborah D. Anderson, Vice President, Proctor & Gamble
WHAT’S NEW
We thank the Spokane’s Community Development Committee for their recommendation to award SNEDA $175,000 in CDBG funds. These funds will enhance our revolving loan fund. Thanks also to the Sahlin Foundation for their contribution of $500 in discretionary, unrestricted funds. The Community Development Board released their tentative allocation of 2003 Community Development Block Grant (CDBG) dollars at a recent hearing.
We were thrilled at the warm welcome Chris Venne, Nick Landis and Eric Loewe received during our March presentations to Browne’s Addition Neighborhood Council, West Central Neighborhood Council and the AVISTA retirees association.
Congratulations to Vic Frazier for his presentation to the Eastern Washington Family Child Care Association (EWFCCA). Vic’s talk at a workshop on March 15 was such a hit that, when the main speaker cancelled, they invited him to be the keynote speaker. As part of his talk Vic listed the marketable skills childcare providers develop by operating a home based business. Attendee Diane White commented, "I am going to put them on my information sheet that I give to prospective clients when they are interviewed by me for business."
MOVING ON
SNEDA says farewell to Entrepreneur Corps Supervisor and SNEDA Office Manager, Pat Link. Pat was an AmeriCorps* VISTA member for two years at Northeast Community Center before his appointment to SNEDA.
SNEDA Business Liaison, Lynn Westhaver is leaving to start a commercial janitorial business. She worked with the business owners in the East Sprague Business District.
