Brief Description: Modifying rural Washington loan fund provisions.

Sponsors: Senators Shin, Schoesler and Rasmussen; by request of Department of Community, Trade, and Economic Development.

Hearing Date: 3/18/05

Staff: Tracey Taylor (786-7196).

Background:

The Rural Washington Loan Fund (RWLF) is a federally-funded loan program administered by the Department of Community, Trade and Economic Development (DCTED). In order to receive a loan, the project must: result in the creation of employment opportunities, the maintenance of threatened employment or development or expansion of business ownership by minorities and women; conform with federal rules and regulations governing the spending of federal community block grants; be of public benefit and for a public purpose; probably be successful; and need the loan in order to be completed. Except those made to women and minority owned businesses, 80 percent of the appropriated funds are to be made available for projects in distressed areas.

Sixty-six projects in 13 counties have received over $16 million in public moneys leading to public development investment of over $136 million. Federal requirements mandate that earnings on federal moneys remain with the program.

Summary of Bill:

The state Treasurer is directed to transfer monthly to the RWLF its proportionate share of earnings based upon the fund's average daily balance.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill contains an emergency clause and Section 1 takes effect July 1, 2005 and expires July 1, 2006. Section 2 takes effect July 1, 2006.