Mayor Katie Wilson and the Seattle Office of Economic Development (OED) announced a substantial expansion of the city’s Small Business Capital Access Program (CAP). The initiative lowers borrowing costs for local entrepreneurs by reducing loan interest rates to a fixed 4% APR and offering direct principal paydown assistance.

The policy update is designed to relieve financial pressures on independent storefronts and neighborhood business districts facing rising operational expenses and tight profit margins.

Direct Relief for Small Employers

Under the updated program guidelines, eligible small businesses across Seattle can secure low-cost financing paired with city-backed financial support:

• Fixed 4% Interest Rate: Interest rates on qualifying loans through participating lenders are reduced to a fixed 4% APR.

• Principal Paydown Grants: Borrowers can receive an award of up to $30,000 or 20% of the loan principal amount (whichever is less) to instantly reduce total debt.

• Streamlined Lending: Financing is issued directly through partner Community Development Financial Institutions (CDFIs) and local lenders, including Grow America, Business Impact NW, Rainier Valley Community Development Fund (RVCDF), Seattle Credit Union, Evergreen Business Capital, and Denkyem Co-Op.

To qualify, businesses must be independently owned, for-profit entities located within Seattle city limits. Applicants must have operated for at least 12 months, employ 50 or fewer full-time equivalent staff members, generate $2 million or less in annual gross revenue, and remain current on city Business & Occupation (B&O) tax filings.

Local Impact on West Seattle

For West Seattle, the expanded program targets key commercial nodes such as The Junction along California Ave SW, the Admiral District, Morgan Junction, and Alki.

Independent eateries, retail boutiques, and service providers along these corridors frequently operate on narrow margins while absorbing high commercial rents. Access to affordable 4% fixed-rate capital—combined with direct debt reduction—gives local merchants a viable pathway to fund tenant improvements, purchase inventory, consolidate high-interest debt, or handle unexpected repairs.

Because participating lenders such as Business Impact NW and Seattle Credit Union already maintain an active footprint in West Seattle, local business owners can work directly with these institutions. Lenders will automatically evaluate applicants for the city’s interest reduction and principal assistance award during the standard loan process, bypassing separate city hall paperwork.

How to Apply

Business owners interested in the program should contact a participating community lender directly to begin an application. Further details and lender contact links are available through the Seattle Office of Economic Development.