BUSINESS FINANCING · WA

Business Financing Guide for Spokane County, Washington

This guide helps solo contractors, small business owners, and real estate investors in Spokane County, Washington understand their local financing options. It covers who qualifies, what documents to gather, and which local lenders, CDFIs, and credit unions actually serve this region. We highlight community-based resources — not just federal programs — and help you avoid common financial traps along the way.

§ 01 — What it is

What Is Business Financing?

Business financing is money you borrow or receive to start, run, or grow a business — or to purchase income-producing real estate. It can come in many forms: • **Term loans** — A lump sum you repay over a fixed period with regular payments. • **Lines of credit** — Flexible access to funds you draw on as needed and repay over time. • **SBA-backed loans** — Loans made by local lenders but partially guaranteed by the U.S. Small Business Administration, which reduces risk for the lender and often means better terms for you. • **Microloans** — Smaller loans (typically under $50,000) offered through nonprofit lenders, great for newer businesses or solo contractors. • **CDFI loans** — Financing from Community Development Financial Institutions, which are mission-driven lenders focused on underserved borrowers, including immigrants and those without traditional credit history. • **Real estate investment loans** — Used to purchase rental properties or fix-and-flip projects, often structured differently than business operating loans. Financing is not a grant — you are expected to repay it. But the right loan from the right lender can be a powerful tool when used carefully.

§ 02 — Who qualifies

Who Qualifies in Spokane County?

Spokane County's economy is shaped by healthcare, logistics, agriculture, construction, retail, and a growing tech sector. That diversity means many types of business owners can find financing that fits. **You may qualify if you are:** • A solo contractor or tradesperson (electrician, plumber, landscaper, general contractor) • A small retail or food-service business owner • A real estate investor purchasing residential or small commercial properties • A startup with less than two years in business (microloans may be your best fit) • An immigrant entrepreneur — with or without a Social Security Number (ITIN-based financing exists) • A woman- or minority-owned business **General eligibility signals lenders look for:** • Time in business (6 months to 2+ years depending on the loan type) • Steady revenue, even if modest — bank statements matter more than tax returns for some lenders • A personal credit score (though some CDFIs work with scores as low as 550 or use alternative underwriting) • Ability to show the loan will be repaid — through business cash flow, rental income, or both • A clear purpose for the funds If you are undocumented or have an ITIN rather than an SSN, do not assume you cannot borrow. Several lenders in Spokane County and across Washington State will work with you — see Section 4.

§ 03 — What you need

Documents You Will Typically Need

Gathering paperwork before you apply saves time and makes lenders more confident in your application. The exact list varies by lender, but here is what most will ask for: **Identity & Legal Status** • Government-issued photo ID (driver's license, passport, or consular ID/matrícula consular) • ITIN letter or Social Security card (whichever applies to you) • Business license or registration with Washington State **Financial Records** • Last 2–3 years of personal tax returns (or 1–2 years for newer businesses) • Last 2–3 years of business tax returns (if applicable) • 3–6 months of business bank statements • 3–6 months of personal bank statements • Profit and loss statement (your accountant or bookkeeper can prepare this) • Balance sheet (for loans over $50,000) **Business Information** • Business plan or simple written description of how you will use the funds • Business license number and any professional licenses (contractor's license, food handler's permit, etc.) • List of business debts already owed **For Real Estate Loans** • Property address and purchase price • Lease agreements (if the property is already rented) • Appraisal or comparable sales data • Contractor bids (for renovation loans) Tip: Many CDFIs and credit unions offer free pre-application coaching. Take advantage of it — they will tell you exactly what they need before you formally apply.

§ 04 — Where to start in Spokane County

Local Lenders, CDFIs, Credit Unions, and SBA Resources Serving Spokane County

These are community-rooted institutions that actually operate in or serve Spokane County. This is the layer of financing most often overlooked — and most often the best fit for small businesses and solo contractors. --- **🏦 Community Development Financial Institutions (CDFIs)** • **Craft3** (headquartered in the Pacific Northwest, serves rural and urban WA) Offers small business loans from $5,000 to $1 million+. Focuses on businesses that have been turned down by banks. Flexible underwriting. Serves Spokane County directly. Website: craft3.org • **Inland Northwest Community Foundation (INWCF)** While primarily a philanthropic organization, INWCF connects small businesses to capital and resources in the Spokane region. Good starting point for referrals. Website: inwcf.org • **Washington Business Alliance / WA SBDC** Works alongside CDFIs to connect Spokane-area entrepreneurs with the right lender for their stage and situation. --- **🤝 SBA District Office** • **SBA Seattle District Office** (serves all of Washington State, including Spokane County) The SBA does not lend money directly — it backs loans made by approved local lenders. The most common programs are: - **SBA 7(a) Loan** — General-purpose business financing up to $5 million - **SBA 504 Loan** — For real estate and large equipment purchases - **SBA Microloan Program** — Up to $50,000 through nonprofit intermediaries The SBA district office can refer you to approved lenders and free counseling. Phone: (206) 553-7310 | Website: sba.gov/offices/district/wa/seattle --- **🏛️ Local Credit Unions (Member-Owned, Lower Fees)** • **Spokane Federal Credit Union** Serves Spokane County residents and businesses. Offers small business loans, lines of credit, and checking accounts. Membership-based but open to most county residents. Website: spokanefcu.org • **Numerica Credit Union** One of the largest credit unions in the Inland Northwest. Offers SBA loans, business term loans, commercial real estate loans, and lines of credit. Known for personalized service and community involvement. Website: numericacu.com • **STCU (Spokane Teachers Credit Union)** Despite its name, STCU is open to most people who live, work, worship, or attend school in Spokane County. Offers business banking and lending products. Website: stcu.org • **Horizon Credit Union** Serves the Inland Northwest. Offers small business loans and real estate financing. Good option if you have been a member for some time. Website: horizoncu.org --- **🌐 ITIN-Friendly and Immigrant-Serving Lenders** • **Craft3** (listed above) has experience working with immigrant-owned businesses and non-traditional borrowers. • **Prestamos CDFI** — While primarily operating in the Southwest, they partner with regional CDFIs to reach Latino entrepreneurs nationally. Worth an inquiry. • **Local bank branches with bilingual staff** — Several Spokane-area branches of regional banks (Banner Bank, Washington Trust Bank) have staff who speak Spanish and experience working with ITIN holders. Call ahead and ask. • **Washington State OSPI / OCLA** — Washington's Office of Civil Legal Aid and community legal clinics can help immigrant entrepreneurs understand their rights before signing any loan documents. --- **📚 Free Business Counseling (No Cost, No Commitment)** • **WSU Small Business Development Center (SBDC) — Spokane** Free one-on-one advising for small business owners. Helps you build a business plan, prepare loan applications, and understand your options before you apply. Website: wsbdc.org | Location: Spokane Valley • **SCORE Spokane** Volunteer mentors — many are retired executives — who meet with small business owners at no charge. Great for financial planning and loan-readiness coaching. Website: score.org/chapter/score-spokane

§ 05 — What to avoid

Washington State-Specific Regulatory Notes

Doing business in Washington State comes with some specific rules that affect your financing and operations. Here are the most important ones for Spokane County business owners: **Business Registration** • All businesses operating in Washington must register with the **Washington State Department of Revenue (DOR)** and obtain a Unified Business Identifier (UBI) number. This is your state business license. Most lenders will ask for it. Website: dor.wa.gov **Contractor Licensing** • If you are a contractor of any kind, you must be licensed with the **Washington State Department of Labor & Industries (L&I)**. Lenders and real estate investors will ask for proof of your contractor's license before funding renovation or construction projects. Website: lni.wa.gov **Washington State Small Business Programs** • **Washington State Department of Commerce** administers several programs for small businesses, including grants and loan guarantees targeted at underserved entrepreneurs. Check their current offerings: Website: commerce.wa.gov • **Washington State Community Reinvestment Act (CRA) Activity** — Banks operating in Washington are required to demonstrate they are lending in underserved communities. This means many banks actively want to lend in lower-income Spokane neighborhoods. Ask your banker directly. **No State Income Tax** • Washington State has no personal income tax, which simplifies some financial planning. However, Washington does have a **Business & Occupation (B&O) tax** based on gross revenue, not profit. Factor this into your repayment planning. **Usury and Consumer Lending Laws** • Washington State has consumer lending protections that cap interest rates for certain loan types and require clear disclosure of fees. The **Washington State Department of Financial Institutions (DFI)** licenses and regulates lenders. If a lender you are dealing with is not licensed by the DFI, consider it a red flag. Website: dfi.wa.gov | Consumer hotline: 1-877-746-4334

§ 06 — Ask a question

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