Equitable Access to Credit Program Grant

The Equitable Access to Credit Program, administered by the Washington State Department of Commerce, is a tax credit initiative aimed at enhancing access to capital for historically underserved communities. The program is designed to support investment in small, rural, and marginalized businesses across Washington by channeling funds through grants to qualified lending institutions. These grants are financed via a unique model that allows businesses and individuals with state Business and Occupation (B&O) tax liabilities to contribute funds in exchange for a dollar-for-dollar tax credit. The maximum annual contribution per business is $1 million, and the statewide program cap is $8 million per calendar year. The structure of the program encourages voluntary contributions to stimulate local economic development. Participants must complete a Contribution Request Form to notify the Department of Commerce of their intention to contribute. Once contributions are submitted, they are verified by Treasury, and the Department of Revenue processes the corresponding tax credits. These credits can only be applied toward B&O tax liability for the current or future reporting periods and are not refundable. Importantly, credits can be carried over for up to two years but may not be used retroactively. Contributions must be made before June 29, 2027, and any earned but unused credits must be used before December 31, 2029. A core mandate of the program is that at least 65% of all awarded grant funds annually must be directed to Native Community Development Financial Institutions (CDFIs) or institutions serving rural counties. This ensures targeted support for communities that historically face greater challenges in accessing financial services. The grant funds can be used by these lending institutions to provide loans, investments, and financial services that foster small business growth and community development. Eligibility to participate as a contributor to the program is open to all businesses and individuals who pay B&O taxes in Washington State. There is no separate application process for the tax credit; however, contributors must maintain sufficient documentation to validate eligibility should the Department of Revenue require it. Taxpayers are expected to file electronically for all B&O returns and must ensure their contribution is received and recorded before claiming the credit. The application process for contributors is streamlined: after signaling intent via the Contribution Request Form, the Department of Commerce provides detailed payment instructions and account access. Once the payment is confirmed by Treasury, a receipt is issued, and the Department of Commerce sends confirmation to the Department of Revenue for tax credit processing. As credits are allocated on a first-come, first-served basis, early engagement is encouraged to avoid exceeding annual caps. For additional inquiries or program-specific questions, Shiloh Penland serves as the program manager and can be reached at [email protected] or by phone at 360-890-2288. While detailed grant application guidelines for lending institutions are expected in the future, contributors are advised to stay updated through the official program webpage, which was last revised on December 5, 2025.