UPDATED July 13, 2009

BUSINESS RESOURCE CENTER

The State of Washington, Klickitat County, and the City of Goldendale offer many financing and incentive programs to build a strong economy. Businesses that are just getting started or looking to expand can get a general overview from the information listed below. For specific information you can contact:
Klickitat County Economic Development - 509-773-7060
City of Goldendale - 509-773-3771
Greater Goldendale Area Chamber of Commerce - 509-773-3400

AREA BUSINESS FINANCING & INCENTIVES

Tax Solution:
Washington State has a stable, uncomplicated tax system that has remained essentially unchanged since 1935. The State’s tax system features: No Corporate Tax, No Unitary Tax, No Inventory Tax, No Personal Tax, and No Tax on Interest, Dividends, or Capital Gains.

Business Assistance Center (BAC) Finance Unit:
The Business Assistance Center (BAC) Finance Unit provides technical assistance and referrals to business owners who are seeking available finance programs on the state and local levels. Finance specialist help business owners and entrepreneurs obtain financing for their start-up and expansion projects.

Rural Washington Loan Fund:
The Rural Washington Loan Fund provides gap financing for businesses located within the Goldendale Industrial Park. By design, the fund finances higher risk projects than those funded by conventional lenders.

Community Development Block Grant:
The Community Development Block Grant Float Loan Program provides short-term fixed rate gap financing for business projects which creates or retains jobs for low and moderate income people.

Section 108 Loan Guarantee:
The Local Development Assistance division may pledge future allocations of Community
Development Block Grant (CDBG) dollars to guarantee qualified business loans. To qualify, businesses must have a State CDBG-eligible local government sponsor. In addition, projects must meet CDBG eligibility requirements, demonstrate a financing gap, and produce economic opportunities for low and moderate income people.

Goldendale Revolving Loan Fund:
An economic development tool used to foster the expansion or retention of local businesses when no other means are available, in partnership with financial institutions when possible, resulting in improved job opportunities for local citizens and a greater tax base for the area.
Loans range from $15,000 to $50,000.

Goldendale Mini Loan:
The goals of this program are to create employment opportunities by financially assisting new or expanding businesses in the Goldendale area. It is the intent of this program to have monies repaid and made available to be used again to further the economics of the City of Goldendale. Loans range from $3,000 to $15,000.

Mid-Columbia Economic Development District Revolving Loan Fund:
In General, loans amounts range from $10,000 to $75,000 and are for terms of 5 to 20 years. Eligible applicants are for profit firms conducting business in the manufacturing, value-added processing, service or retail sectors. Revolving Loan Fund monies are used to leverage private and commercial lender dollars, encouraging other lenders to participate in a project.

Sales & Use Tax Exemption:
Sales and use tax exemptions are available to manufacturing, research and development, and computer-related service businesses locating or expanding their work force, machinery and equipment, and plant in Klickitat County.

Business and Occupation Tax Credit:
This program allows a credit against the B&O tax for manufacturing, research and development, and computer-related service business for each new employment position created, or if the existing work force is increased by 15% over the average number of full-time employment positions maintained in the prior year.

Infrastructure Development:
To facilitate the location and expansion of industry, Washington State has created a special Contingency fund to finance the local public improvements required for development. The Community Economic Revitalization Broad (CERB) administers the development fund for the state. CERB monies are awarded as loans, or in special cases grants, to local governments on an as-needed basis for public works projects. Eligible activities include access roads, sewer and water extensions and other public improvements.

Industrial Revenue Bonds:
Tax-exempt bond financing for industrial facilities is available in Washington State through the Industrial Revenue Bond (IRB) program. Administered by the Washington State Business ssistance Center, a division of the Department of Community, Trade and Economic evelopment, the IRB Program permits public corporations to issue federal tax-exempt bonds on behalf of private companies. The key advantage of this type of financing lies in its tax-exempt status. Interest payments to IRB bond buyers are not subject to US income tax.. As a result, bond buyers are willing to accept lower rates of interest on these bonds, thus reducing project financing costs for the participating companies. Generally, interest rates follow AAA tax-exempt bond market rates. Changes in the federal tax laws allow only manufacturers and processors to finance capital investment with bond proceeds. The type of IRB issued to finance manufacturers and processors are called “Qualified Small Issue” bonds. A wide range of project costs may be financed with bond proceeds. Up to $10 million in bonds may be issued to finance one project. However, if more than $1 million in bonds are issued for a project, then the company may not have more than $10 million in capital expenditures during a six year period. That period runs from three years prior to the bond sale until three years after the bond sale.