Washington small business grants, loans and training funds (2026)
The Washington State Department of Commerce spends its $163 million federal SSBCI allocation through outside lenders and fund managers as loans, collateral support and venture equity, and the community and technical college system pays half of employer training costs. The state has no grant for opening a business, so this guide sorts each 2026 program by what it actually pays.
Figures apply to 2026
Contents10 sections
Key takeaways
- Washington's SSBCI money is not a grant program: Commerce's own page says its capital programs offer loans and equity, not grants 1.
- The Small Business Flex Fund 2 microloan (up to $250,000) has paused new applications while Commerce redesigns it 3.
- The Heritage Bank SSBCI loan covers 9% of an owner-occupied building project at 1% and is forgiven after 10 years if the loan is not in default 4.
- The Job Skills Program pays half of customized employee training through a college or other licensed provider, with 2026-27 funds awarded on a rolling basis 8.
- The Legislature extended the Customized Training Program's 50% B&O tax credit to repayments of training received before July 1, 2031 9.
- STEP export vouchers reimburse 75% of eligible costs, up to $10,000 per company per federal fiscal year 10.
Quick facts
| State startup grant | None. Washington offers loans, equity, training grants and narrow targeted grants 111 |
|---|---|
| SSBCI allocation | $163 million, run by Commerce through five partner programs 2 |
| Largest SSBCI loan line | Flex Fund 2, $63 million, up to $250,000 per loan; paused 23 |
| Employer training grant | Job Skills Program pays 50% of training; employer matches 50% 8 |
| Export grant | Up to $10,000 a year, 25% cash match (STEP vouchers) 10 |
| Free advising | Washington SBDC, 30+ advisers, hosted by WSU 12 |
Programs at a glance
| Program | Type | Help available | Status |
|---|---|---|---|
| Washington Small Business Flex Fund 2Washington State Department of Commerce (SSBCI), managed by Calvert Impact | Repayable loan | Up to $250,000 at a fixed rate, 36 to 72 months, for firms under 50 employees and $5 million revenue | Closed (new applications paused for a redesign) |
| Owner-Occupied Commercial Real Estate Loan ProgramHeritage Bank Community Development Entity (HBCDE), for Commerce (SSBCI) | Forgivable loan plus repayable companion loan | SSBCI loan for 9% of project cost at 1% fixed, forgiven after 10 years if not in default | Open (priority to CDFI-eligible census tracts) |
| Small Business Collateral Support ProgramEvergreen Business Capital Community Finance, for Commerce (SSBCI) | Repayable loan (collateral support) | Certificate of deposit pledged for up to 40% of an SBA 504 interim loan; fee 1.5% to 2.5% | Open through 504 lenders |
| Revenue-Based Financing FundGrow America and Denkyem Co-op, for Commerce (SSBCI) | Repayable loan (revenue-based) | $10,000 to $50,000 (Denkyem) or $50,001 to $500,000 (Ajust), repaid as a share of monthly revenue | Open (Ajust); Denkyem matches were paused through September 30, 2026 |
| Job Skills Program (JSP)Washington State Board for Community and Technical Colleges | Grant (paid to the training provider) | Pays half of customized employee training; the employer matches dollar for dollar | Open (2026-27 funds awarded on a rolling basis) |
| Customized Training Program (CTP)Washington State Board for Community and Technical Colleges | Repayable loan (interest-free) with tax credit | State pays training up front; you repay over 18 months interest-free and claim a 50% B&O tax credit | Open |
| State Trade Expansion Program (STEP) Export VouchersWashington State Department of Commerce with the U.S. Small Business Administration | Grant (cost reimbursement) | Up to three vouchers and $10,000 per company per federal fiscal year; 75% of costs, 25% cash match | Open (apply before the export activity) |
| Washington Small Business Development Center (SBDC)Washington State University with the U.S. Small Business Administration | Free service | No-cost, confidential one-on-one advising from 30+ advisers statewide | Open |
As of October 2026, the Washington State Department of Commerce runs five programs funded by the federal State Small Business Credit Initiative (SSBCI): the Small Business Flex Fund 2, an owner-occupied commercial real estate loan, a collateral support program, a revenue-based financing fund and a venture capital fund 1. Commerce states that these capital programs do not make grants 1. The state’s own “grants and loans for starting a business” page points mostly to SBA loans, federal SBIR/STTR awards and local agencies. Its one startup-focused entry, Startup 365, offers no direct loans or grants and only connects owners to lenders and technical help 11. What Washington does fund is credit on easier terms, half the cost of training your staff, export travel and fees, and a handful of local grants with short windows.
Four kinds of money, sorted
Lists of “Washington small business grants” usually mix these together. Sort them before you spend time applying:
- SSBCI credit and equity (you repay or give up equity). Flex Fund 2, the Heritage Bank real estate loan, the Collateral Support Program, the Revenue-Based Financing Fund and the Washington State Venture Capital Fund 1.
- Training money (paid to a college or training provider, not to you). The Job Skills Program and the Customized Training Program, both run by the State Board for Community and Technical Colleges (SBCTC) 78.
- Reimbursement grants. STEP export vouchers from Commerce 10.
- Local grants with application windows. Workforce development council grants from the state’s Community Reinvestment Project, and city programs such as Seattle’s Tenant Improvement Program 1315.
Washington has no state SBIR/STTR matching program on Commerce’s capital page or the state business portal. The portal lists only the federal SBIR and STTR grants, which you apply for directly with the 11 federal agencies 111.
Where Commerce’s $163 million SSBCI allocation went
Commerce received $163 million from Treasury and hands day-to-day lending to outside administrators 2. You apply to the administrator, not to Commerce 1.
| Program | Administrator | Size and terms | Who it fits |
|---|---|---|---|
| Small Business Flex Fund 2 ($63 million) | Calvert Impact with community lenders | Up to $250,000; fixed 8.25% to 11.25% when checked; 36 to 72 months; no prepayment penalty | Firms and nonprofits with under 50 employees, under $5 million revenue, 1+ year in business |
| Owner-Occupied Commercial Real Estate Loan ($25 million) | HBCDE, LLC (Heritage Bank) | SSBCI loan for 9% of project cost at 1% fixed, interest-only for 10 years, forgiven at maturity if not in default; projects up to $20 million | Businesses with 750 or fewer employees buying, building or expanding a building they occupy |
| Collateral Support Program | Evergreen Business Capital Community Finance | CD pledged for up to 40% of an SBA 504 interim loan; fees 1.5% (12 months), 2.0% (18), 2.5% (24) | 504 borrowers with 500 or fewer employees who are short on collateral |
| Revenue-Based Financing Fund ($12 million) | Denkyem Co-op; Grow America (Ajust) | $10,000 to $50,000 at 5% of monthly revenue (1.10x); $50,001 to $500,000 at 20% (1.24x); 3 years | Washington for-profits with 500 or fewer employees; Ajust needs 3+ years in business |
| Washington State Venture Capital Fund ($49 million) | Flying Fish Partners, Pier 70 Ventures, VertueLab | Equity investments, not loans | Venture-backable startups in AI, health care and climate tech |
Scroll the table sideways to see every column.
Sources: Flex Fund terms 3; real estate loan 4; collateral support 5; revenue-based financing 6; fund sizes 12.
Flex Fund 2 is paused. Its website says Commerce has stopped processing new applications while it redesigns the program for the microloan market. The free technical assistance that came with it still runs through Roads Consulting Group and Business Impact NW 3. The rate quoted on the site, 1% to 4% over a 7.25% prime rate, will change when the fund reopens 3.
The Heritage Bank loan is the closest thing to grant money in the SSBCI mix, and only for building owners. In Heritage’s own example, a $2 million grocery project pairs a $180,000 SSBCI loan with a $1.5 million conventional companion loan and $320,000 of owner cash 4. The 9% piece is forgiven only at the 10-year maturity, and the program cannot be combined with SBA 504, SBA 7(a) or USDA loans 4. Projects in CDFI-eligible census tracts that keep or add jobs there get priority 4.
Revenue-based financing has a status catch. When checked, Grow America’s page said Denkyem was pausing new loan matches through September 30, 2026; confirm before applying 6. Neither product refinances existing debt 6.
SBCTC training money: one grant, one interest-free loan
The Job Skills Program is a true grant, but it never goes to you. A licensed Washington educational institution, such as a community or technical college, applies for you. JSP pays half of the customized training, and your business puts up the other half in cash or in-kind 8. SBCTC funds projects where skilled workers are scarce, where upgraded skills prevent layoffs, where a new business needs a workforce, or where local unemployment is high 8. For 2026-27, funds became available July 1, 2026 and are awarded on a first-approved, rolling basis through the fiscal year. Final invoices are due July 15, 2027 8.
The Customized Training Program is a loan with a tax break. SBCTC pays the training cost up front. You repay 25% when training ends and the other 75% over the next 18 months with no interest 7. Each repayment earns a business and occupation (B&O) tax credit of 50% of the payment, so the credit totals half the training cost 79. Some older summaries say the credit ended in July 2026. The 2025 Legislature (chapter 289, Laws of 2025) extended it: the credit now applies to training allowances received before July 1, 2031 9. You must be a Washington B&O taxpayer located in or moving to the state 7.
STEP export vouchers from Commerce
Commerce’s STEP vouchers reimburse up to 75% of the cost of an export activity. Each company can receive up to three vouchers and $10,000 in a federal fiscal year, which Commerce lists as June 30, 2026 to September 29, 2027 10. Eligible costs include trade show and trade mission fees, basic economy airfare for up to two people, translation, international marketing and search engine work, e-commerce fees, sample shipping, compliance testing and IP protection 10. You must be an SBA-defined small business. Distributors qualify only if at least 51% of the product’s value is added in the U.S. 10.
Apply before the event: Commerce does not reimburse activities that have already happened. After the trip, send all documents within 30 days. Commerce says payment usually follows in about three weeks, once you have a Statewide Vendor Number 10. A review committee decides awards 10.
Local grants funded by the Community Reinvestment Project
Commerce’s Community Reinvestment Project (CRP) sends money through workforce development councils, which run small business grants for equipment, capacity building and employee training 13. These rounds open and close quickly:
| Council | Counties | Grant | Status |
|---|---|---|---|
| Pacific Mountain WDC | Grays Harbor, Lewis, Mason, Pacific, Thurston | Small Business Investment Grant | Closed February 12, 2026 13 |
| Olympic WDC | Clallam, Jefferson, Kitsap | CRP Small Business Grants | Closed February 20, 2026 13 |
| Seattle-King County WDC | King | Small Business Investment Grant, up to $15,000 (2024 round: 40 businesses) | No 2026 deadline posted 14 |
| Seattle-King County WDC | King | Workforce Accelerator Grant, up to $6,500 for paid internships, training or new-hire wages (50 businesses in 2025) | No 2026 deadline posted 14 |
| Seattle-King County WDC | King | Intermediary partner grants up to $10,000 through Tabor 100 and the Seattle Latino Metropolitan Chamber | New $400,000 round launching 14 |
Scroll the table sideways to see every column.
The King County grants give priority to businesses owned by people from Black, Native and Tribal, and Latine communities 14. Commerce also runs grants for cannabis retail licensees under its Cannabis Social Equity Program, which is limited to that license pool 1.
Seattle’s Tenant Improvement Program
The City of Seattle’s Office of Economic Development offered a sign package up to $15,000 and an equipment package up to $50,000 in 2026 15. Awards are 0% forgivable loans. They become grants after one year of continued operation from the last draw, provided you meet a public benefit commitment 15. To qualify, a business must be independently owned, at least two years old, inside city limits in commercial space, with no more than two locations, fewer than 50 full-time employees and under $2 million in revenue 15. The 2026 window ran March 2 to April 13, 2026, and is closed 15.
Getting started through the SBDC and Startup 365
The Washington SBDC, hosted by Washington State University with the SBA, has more than 30 advisers who give confidential, no-cost advice, often from community college or economic development offices 12. Very small businesses and businesses owned by socially and economically disadvantaged people who apply for SSBCI capital can also get free legal, accounting and financial help through Commerce’s SSBCI Technical Assistance Program 1.
Book an SBDC adviser
Find your local adviser in the state directory 12. Bring tax returns, a year-to-date profit and loss statement, a debt schedule and the amount and use of funds. Ask which SSBCI program fits your loan size.
Match the SSBCI program to your project
Owner-occupied building projects go to HBCDE 4. If you are buying a building with an SBA 504 loan, ask your bank to email [email protected] for collateral support forms 5. For working capital, start with the revenue-based fund 6. Watch the Flex Fund site for its relaunch 3.
Ask for SSBCI technical assistance if you qualify
Complete the short questionnaire linked from Commerce’s Access to Capital page, and a provider will contact you 1.
Call your community college’s training coordinator before training starts
The college writes the Job Skills Program or Customized Training Program application with you and submits it to SBCTC 78. Have your trainee count, job titles, the skills gap and your 50% match planned. JSP questions go to SBCTC at [email protected] or 360-704-3907 8.
File the STEP voucher application before the trade show or mission
Use Commerce’s grants portal, get a Statewide Vendor Number, and keep receipts for the 30-day reimbursement deadline 10.
Get on local grant lists
Sign up for your workforce council’s notices and your city’s business newsletter, since CRP and Seattle rounds open for only a few weeks 1315.
If you are turned down, try the next lender or round
SSBCI decisions are credit decisions made by each administrator, so a “no” from one product does not rule out another 1. JSP funds stay open through the fiscal year, so a college can revise and resubmit 8.
For other Washington programs, see the Washington overview, or compare states on the small business grants hub.
Verified resources
Where to apply
- Commerce Access to Capital (SSBCI programs and administrators) commerce.wa.govApply through each program's administrator, not Commerce; questions to [email protected]
- Heritage Bank SSBCI commercial real estate loan heritagebanknw.com
- SBCTC employer training grants and loans sbctc.eduStart with the training coordinator at your nearest community or technical college
- Commerce STEP Export Voucher Program commerce.wa.govQuestions to [email protected]
- Washington Business Resources directory (SBDC and state help) business.wa.gov
Sources
- 1
- 2
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- 4 Heritage Bank / HBCDE, LLC, SSBCI Commercial Real Estate Loan Checked Oct 20, 2026 · Back to text ↑
- 5
- 6 Grow America, Washington's Revenue-Based Financing Fund Checked Oct 20, 2026 · Back to text ↑
- 7
- 8
- 9
- 10 Washington State Department of Commerce, STEP Export Voucher Program Checked Oct 20, 2026 · Back to text ↑
- 11
- 12 State of Washington, business.wa.gov, Directory of Business Resources Checked Oct 20, 2026 · Back to text ↑
- 13 Washington State Department of Commerce, CRP Newsletter: February 2026 Checked Oct 20, 2026 · Back to text ↑
- 14
- 15 City of Seattle Office of Economic Development, Tenant Improvement Program Checked Oct 20, 2026 · Back to text ↑
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More help in Washington
- First-Time Homebuyer GrantsHome Advantage DPA
- Energy and Utility AssistanceLow-Income Home Energy Assistance Program (LIHEAP)
- Cash AssistanceTemporary Assistance for Needy Families (TANF)
- Childcare AssistanceWorking Connections Child Care (WCCC)
- Student and Vocational GrantsWashington College Grant (WA Grant)
Small Business Grants in other states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming. Compare all states.