Blended Capital Enhancement Grants

The Washington State Department of Commerce's Blended Capital Enhancement Grants are part of the Community Reinvestment Project (CRP), a new initiative aimed at reducing wealth disparities within Black, Latine, and tribal communities through asset building. The program seeks to support by-and-for lending agencies, businesses, and organizations that serve these specific communities. The overarching mission is to make it easier for these communities to access financial support from local organizations and businesses, fostering economic empowerment and equity. The grant program targets Black, Latine, and tribal communities across Washington state, as well as the lending agencies, businesses, and organizations that are either led by and for these communities, or are partnered with such entities. The impact goals are centered on facilitating homeownership, supporting small businesses and entrepreneurs, providing money management and business training, assisting with the acquisition of commercial property and business assets, and helping individuals reduce debt and increase savings through matching funds. These goals directly address key areas of wealth accumulation and financial stability. The program prioritizes funding for a variety of initiatives including new construction loans ($5 million), home expansion loans (including Accessory Dwelling Units or ADUs) ($6 million), business startups and expansions ($5 million), and consumer loans (such as credit consolidation, car refinancing, or emergency expenses) ($1 million). The total funding available is $42 million. The focus is on creating accessible financial pathways and resources that have historically been less available to the targeted communities. Expected outcomes include an increase in homeownership rates within Black, Latine, and tribal communities, the growth and sustainability of small businesses and entrepreneurial ventures, improved financial literacy and money management skills among individuals, and a reduction in personal debt coupled with increased savings. These measurable results align with the broader strategic priorities of the Washington State Department of Commerce to foster economic development and reduce disparities. The theory of change suggests that by empowering local, by-and-for organizations with capital, they can more effectively deliver essential financial services and support, thereby directly addressing systemic inequalities and building lasting wealth within these communities.