Washington State's $40 Million Community Reinvestment: A Breakdown of the Programs and Impact
The Washington State Department of Commerce has made a groundbreaking commitment to addressing systemic inequities and fostering economic empowerment in communities disproportionately affected by the war on drugs. Through a substantial investment of $39.8 million in grants to 19 organizations and institutions, the Community Reinvestment Project (CRP) is set to make a tangible difference in the lives of Washingtonians.
Commerce Director Mike Fong, speaking at the grant announcement event at the UW Commons at Othello in South Seattle, emphasized the importance of access to capital for economic opportunity and generational wealth-building. He acknowledged the historical and systemic barriers faced by many communities and expressed pride in partnering with organizations that promote equitable access to financial resources. In his words, "We are proud to stand with community partners throughout the state who are promoting equitable access to financial resources that help individuals, families, and businesses get ahead and grow."
Washington State Department of Commerce Director Mike Fong (Photo: Jordan Somers)
Understanding the Community Reinvestment Project (CRP)
The CRP is not a top-down initiative but a community-designed plan with a clear focus: to uplift those harmed by the war on drugs. It aims to achieve this by:
Assisting target communities in acquiring and securing assets like homes and businesses.
Fostering collaboration and shared goals among community organizations.
As Commerce Director Mike Fong stated, "At the end of the day, the State Department of Commerce wants to invest in communities and ultimately make sure that we create economic pathways for opportunity for people all across the state."
Key Programs Driving Change
The $40 million investment will fuel two primary CRP programs:
Loan Guarantee Program: This program tackles the barriers faced by underserved communities, small businesses, and startups in accessing traditional financing. By providing funding and loan loss reserves to lenders, the program encourages them to extend loans and financial services to those often overlooked by conventional banks. This will enable aspiring entrepreneurs to launch businesses, existing businesses to expand, and community-based projects to get off the ground, stimulating economic activity and job creation in areas that need it most.
Blended Capital Investments: This program focuses on empowering individuals and families to secure and build assets. Whether it's purchasing a home, acquiring commercial property, investing in business assets, or even securing a vehicle, this program aims to create pathways to wealth generation and stability. By providing financial assistance and support, the program helps individuals and families overcome financial hurdles and build a stronger economic foundation.
Addressing Homeownership Disparities
A key priority of the CRP is to address the stark homeownership disparities affecting Black, Latine, and tribal communities. These communities have been disproportionately impacted by the war on drugs, and the CRP seeks to rectify this historical injustice by facilitating access to homeownership opportunities. By partnering with community organizations and developers of color, the CRP aims to increase the availability of affordable housing and promote sustainable homeownership in these communities.
Community Impact and Voices
Dominique Remy, Co-Founder of 1Drop, highlighted the transformative potential of the grant for developers of color, stating, "When we are able to correct and solve for the capital needs that are necessary for developers of color, that changes the game in terms of us being able to scale up, being able to be more competitive, [and] be more resilient."
Dominique Remy of Remy Properties and Co-Founder of 1Drop. (Photo: Jordan Somers)
The impact of the CRP will be felt on the ground level. Korbett Mosesly, Managing Director of the Community Reinvestment Plan, emphasized the tangible nature of the investment: "You should be able to in every in any community throughout the state. You should be able to throw a rock and hit it and see a CRP dollar." This sentiment underscores the widespread reach and potential impact of the CRP, as it aims to touch communities across the state.
Mosesly also shed light on the practical outcomes of the investment, stating, "You will be able to see is new units actually going up and being developed, and probably more diversity in terms of the general contractors, the subcontractors and people working on the on those projects, you should also see more people of color being the end beneficiaries of some of those units." This highlights the CRP's focus on not only creating economic opportunities but also ensuring that those opportunities are accessible to and benefit the communities most impacted by the war on drugs.
Korbett Mosesly, Managing Director of the Community Reinvestment Plan discusses the CRP with Besa Gordon of Converge Media. (Photo Jordan Somers)
A Promising Future
With 87% of the awarded funds earmarked for counties most affected by the war on drugs, the CRP is strategically positioned to create meaningful change. By promoting access to capital, supporting small businesses, and facilitating homeownership, this initiative has the potential to reshape the economic landscape of Washington State.
The CRP is more than just a financial investment; it's a commitment to equity, community empowerment, and a brighter future for all Washingtonians. As Director Fong aptly put it, "This is just the beginning." With continued collaboration, innovation, and community engagement, the CRP has the potential to create a lasting legacy of economic justice and opportunity in Washington State.
Recipients of these grant funds are:
Loan Guarantee - New Construction: $5 million
Homesight, statewide: $5 million
Loan Guarantee - Home expansion/accessory dwelling unit: $6,270,000
Black 4 Enterprises LLC, King, Snohomish, Pierce counties and others as needed: $3 million
Byrd Barr Place, King, Snohomish, Pierce, others as needed: $2.25 million
Central Area Collaborative, King, Snohomish, Pierce counties and others as needed: $1,020,000
Loan Guarantee - Consumer Loans: $1 million
Black 4 Enterprises LLC, King, Snohomish, Pierce counties and others as needed: $1 million
Loan Guarantee - Business expansion and start-up: $4,302,910
Langston, King county-based, open to anyone who can attend at the Seattle location: $424,300
Lummi Indian Business Council, Lummi Indian Tribe: $835,000
Northwest Native Chamber, Clark, Cowlitz, King, Okanogan, Pierce, Snohomish, Spokane, Whatcom, and Yakima counties: $748,910
Phenomenal She, Pierce and South King county: $300,000
Rainier Valley CD, King County - Rainier Valley/Seattle: $1,994,700
Blended Capital Enhancements: $23,258,200
Center for Inclusive Entrepreneurship, Adams, Benton, Franklin, Grant, Clallam, Jefferson, Skagit and Island counties: $250,000 for business start-up and expansion
City of Tacoma, Tacoma: $4 million for business start-up or expansion
Kitsap Community Resources, Kitsap, King, Pierce counties: $1 million
Funding for GED, college scholarships, and credit building
Making a Difference Foundation, Pierce and South King County: $1,008,200 for funding for farmers, business start-up and expansion
NW Access Fund, Clark, King, Pierce, Snohomish, Spokane, Yakima counties and others as needed: $1.5 million for home and vehicle modification, and business opportunities for individuals with disabilities
Opportunities Industrialization Center, Yakima, Kittitas, Benton, Franklin, Adams, Grant, Chelan, Douglas, and Okanogan counties: $2 million for business start-up and expansion
Pacific NW Tribal Lending, Tribal communities in Western Washington: $1 million for business start-up and expansion, consumer loans, and debt repair
Seattle Urban Leagues, Seattle: $9.5 million for down payment assistance, major systems home repair
WOW Tri-Cities, Yakima, Adams, Benton, Columbia, Franklin, Grant, and Walla Walla counties: $3 million for consumer loans, business loans, educational scholarships, emergency loan fund
