In August 2023, the Washington State Department of Commerce launched a new program with the intent to spur economic and community development in small, rural, and historically underserved communities: the Equitable Access to Credit Program. Washington Trust has confirmed its commitment to this cause and will make up to $1 million in contributions this calendar year.
The Equitable Access to Credit Program seeks to make an impact on businesses and individuals who have historically lacked access to traditional financing. The program disburses contributed funds in the form of grants to qualified lending institutions. These lenders then award grants within their markets, such as in the form of small business training and technical assistance or as loans and investments in small business and community development initiatives.
Funding for the Equitable Access to Credit Program comes from business and operation (B&O) tax dollars. Organizations subject to the B&O tax are invited to pay their tax liability up front to the program, and in return, they receive a dollar-for-dollar tax credit from the Department of Revenue. Organizations can contribute up to $1 million of their B&O tax liability, significantly reducing or even eliminating their B&O tax payment at filing.
Washington Trust joined the program in April, making the first of a series of monthly payments. The Bank is ready to contribute a full $1 million this year, but the final tally will depend upon other registered participants. The program has a cap of $8 million in total annual contributions for 2024, and through June of this year, the program has already received $4.9 million.
Details about the Equitable Access to Credit Program are available here.