Maycumber bill to help small businesses access much-needed credit passes House of Representatives
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Maycumber bill to help small businesses access much-needed credit passes House of Representatives
Legislation passed the state House of Representatives today that would make it easier for small businesses in rural and underserved communities to access lines of credit.
House Bill 1015 creates the Equitable Access to Credit Program within the Department of Commerce for the purpose of awarding grants to qualified lending institutions, which would then provide access to credit for small businesses. The bill also creates a business and occupation (B&O) tax credit for contributions made to the program.
Rep. Jacquelin Maycumber, R-Republic and prime sponsor of the bill, called it an important tool for economically distressed regions, especially in the post-COVID economy.
“Small businesses in rural and underserved communities continue to struggle gaining access to the necessary credit to expand operations or invest in upgrades or more employees,” said Maycumber. “Entrepreneurs and small businesses in rural areas need the same access to credit as our urban areas. We need to protect our rural economies and this legislation is another important tool to bring more opportunities to small businesses and entrepreneurs.”
Maycumber stressed there are large corporations donating millions of dollars to Community Development Financial Institutions (CDFI) across the nation. In order to take advantage of those dollars, the state can offer a small B&O tax credit, which encourages donations to Washington state lending institutions.
“Private money is available but if we don’t have the programs in place to receive that money, and then lend it back out, we’re missing out on emerging opportunities to expand and protect our rural economies,” said Maycumber. “My proposal creates the necessary infrastructure to make this happen. It will have an immediate effect on our local, rural economies. More entrepreneurs, more small businesses, more jobs. It’s a win-win for the corporations donating the money, and the communities that will now have equitable access to credit.”
Maycumber’s bill was supported in committee by several tribes as well.
“Our tribes are underserved when it comes to access to credit,” said Maycumber. “Their continued support has helped get House Bill 1015 this far.”
Maycumber’s bill passed the House of Representatives last year as well. It had a public hearing in the Senate but was not brought up for a vote by the Senate during the 2021 legislative session.
The 60-day, 2022 remote legislative session began Jan. 10.
