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Owner-occupied commercial real estate loan program

WA State Small Business Credit Initiative

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Request a call or emailHBCDE Program
 

Washington State Small Business Credit Initiative

The Washington State Small Business Credit Initiative provides much-needed capital to small businesses and nonprofits throughout Washington, particularly those in historically underserved and under-banked communities. SSBCI is administered by the Washington State Department of Commerce in partnership with the U.S. Department of Treasury and financial institutions statewide. For more information, click here.
Through the SSBCI program and the Heritage Bank Community Development Entity (HBCDE), Heritage Bank is using our own capital to make commercial real estate loans to qualified businesses. We intend for these loans to fuel economic growth and create jobs. Priority for program funds will be given to businesses located in a Community Development Financial Institutions (CDFI) eligible census tract and which retain and grow jobs in those communities.
 

Benefits of a SSBCI Commercial Real Estate Loan

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Lowering project risk to your small business:

Lower loan interest rates and interest-only structure on the SSBCI program may result in improved cash flow for your business due to lower debt payments.

Improve business liquidity by allowing the SSBCI loan to replace a significant portion of the cash down payment on the project.

Improving the ability of your small business to qualify for financing:

The lower debt payments on the SSBCI loan allows you to qualify for a larger loan amount.

The loan structure, including both the SSBCI loan and the conventional companion commercial real estate loan, allows you to qualify for a larger level of project debt funding and a higher loan-to-value (LTV).

 

Features of a SSBCI Commercial Real Estate Loan

Each project will have two separate loans: a subsidized "SSBCI loan" and a conventional "companion loan."

SSBCI loan from HBCDE, LLC*

  • Forgivable loan for 9% of the new project cost
  • Project size limits: no minimum, up to $20 million
  • Repayment structure: Interest due monthly for 10 years, multiple advances available on construction projects, ten-year maturity, loan balance forgiven at the ten-year maturity if not currently in default or previously liquidated
  • Pricing: 1% fixed annual percentage rate (APR); no loan fee
  • Qualifying business must have 750 employees or less and be in Washington State
  • Borrowers will work directly with HBCDE for the entire loan process

Companion loan from either HBCDE, LLC or Heritage Bank*

  • Conventional commercial real estate loan underwriting and pricing

 

Loan Example
Property purchase $750,000
Construction of new grocery store $1,250,000
Total Project Uses $2,000,000
   
Cash from project owner $320,000
SSBCI loan (9%) $180,000
Companion loan (standard underwriting & pricing) $1,500,000
Total Project Sources $2,000,000
 

Frequently Asked Questions

How do I determine whether my project will receive priority for program funds?

The program will give priority to businesses located in a CDFI eligible census tract and which retain and grow jobs in those communities. Interested borrowers will be asked to complete documentation identifying the location of the project and number of jobs retained and created from the project.

What are the financing scenarios that could be considered under this program?

The following project scenarios may be considered, subject to your business occupying the building:

  • Purchase land and construct a building
  • Purchase an existing building, no renovations
  • Purchase an existing building, make renovations
  • Own land (no debt), construct a building
  • Own an existing building (no debt) then expand or construct a new building
  • Own an existing building (with debt) then expand or construct a new building
 

HBCDE, LLC, a subsidiary of Heritage Bank, has been certified by the Community Development Financial Institutions Fund of the United States Department of Treasury as a Community Development Entity to provide loans, investments and services to economically distressed areas.

 

*Subject to credit approval and program guidelines. Certain restrictions apply to refinancing options and are subject to program terms. This program cannot be combined with other governments sponsored programs (e.g., SBA 504; SBA 7a; USDA; etc.). Financing maximums and terms are determined by borrower qualifications and use of funds. Heritage Bank and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. Credit products are offered by Heritage Bank. This flyer is intended to provide a summary, final executed loan documents should be relied on for complete and final terms.

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