Business leaders in historically underserved communities throughout Washington State told us at the Washington State Department of Commerce they want equitable financing as defined by community – not by traditional lenders. Products like Character-based lending, an equitable, holistic, and relational lending process based on strengths of the business model rather than the borrower’s credit score.
With just days left until the end of the Legislative Session, a lawmaker asked us for ideas to improve capital access. We immediately shared what we’d learned from community leaders, and the Legislature provided $13.5 to serve as a loan guarantee for a Character-Based Financial product developed in partnership with philanthropy, social impact investors, lending institutions and community.
Team: Sarah Lee, Tresa Thomas Massiongale