Gov. Gregoire signs bill to promote minority businesses

OLYMPIA – May 6, 2005 – Gov. Christine Gregoire today signed a bill thatdoubles the Linked Deposit Program’s lending authority to $100 million forwomen- and minority-owned business enterprises.”This program encourages banks to make loans to certified minority- andwomen-owned businesses at below-market rates,” Gregoire said. “We must actto spur women- and minority-owned small business in Washington, both for thebenefit of the business owners and for the benefit of the state’s economy.”The Linked Deposit Program was created in 1993. Certified minority- andwomen-owned businesses can obtain reduced interest rate loans fromparticipating financial institutions. The State Treasurer is authorized to use up to $100 million of short-termstate treasury surplus funds. These funds are deposited with banks ascertificate of deposits on the condition that the banks make “qualifyingloans” under the program. The interest rate charged to the minority- orwomen-owned businesses receiving the loan are two percentage points belowmarket interest rates.Under the current program, more than 4,000 people are employed. There is awaiting list of about 11 months and $7 million.”The benefits of the program to a small disadvantaged business such as GHAare tremendous,” said Duane Hill, an owner of Griffin, Hill & Associates, amanagement-consulting firm in the Seward Park area of Seattle. “The benefitsof the program would materially contribute to my firm’s ability to createand save jobs. The savings under the program would greatly reduce mycompany’s expenses and lead to increased profits, which would lead to ourfirm’s ability to hire more employees, pay our monthly office expenses andexpand our business.”