Coastal Community Bank announced a significant commitment to fostering small business growth and economic development with a $5 million investment in the Solomon Hess SBA Loan Fund. This initiative reinforces the Bank’s dedication to supporting entrepreneurs and job creation across Snohomish and King Counties in Washington state.
The investment is aligned with Coastal Community Bank’s Federal Reserve-approved Community Reinvestment Act (CRA) Strategic Plan. It aims to broaden access to capital for businesses that might not meet the criteria for conventional financing. By participating in the SBA 7(a) loan program, the Bank helps small businesses acquire the necessary funds to expand operations, generate employment, and contribute to the vitality of local economies.
Community Bank Commits $5 Million to Small Business Growth
Coastal Community Bank’s strategic investment involves purchasing federally guaranteed portions of SBA loans. This action directly increases the availability of capital for entrepreneurs and small business owners. The Bank views this as a crucial step in supporting economic opportunities throughout the communities it serves.
Cinnamon Chambers, SVP and CRA Officer at Coastal Community Bank, emphasized the vital role of small businesses. “Small businesses are the backbone of our local economy,” Chambers stated. “When entrepreneurs have access to capital, they create jobs, expand services, and help build vibrant local communities. This investment allows us to support economic opportunity while fulfilling our commitment to making a measurable impact through our CRA Strategic Plan.”
Bill Einstein, Founder and CFO of the Solomon Hess SBA Loan Fund, highlighted the fund’s mission. “The SBA Loan Fund’s primary mission is to support job creation and retention in low- and moderate-income communities by investing in the guaranteed portion of SBA 7(a) loans,” Einstein explained. “We’re proud to partner with Coastal Community Bank to support local small businesses in King and Snohomish Counties.”
This $5 million investment is projected to stimulate economic development activities. These activities are expected to benefit communities within Coastal’s assessment area. The initiative also aims to strengthen opportunities for business expansion and workforce development.
Expanding Access to Capital for Entrepreneurs
Chris Adams, Executive Chair at Coastal Community Bank, underscored the importance of accessibility in fostering economic progress. “Economic opportunity begins with access,” Adams said. “By supporting the SBA 7(a) program, we are helping provide financing solutions that enable businesses to overcome barriers, pursue growth opportunities, and create positive economic impact throughout Snohomish and King Counties. Supporting small business success is one of the most meaningful investments we can make in the future of our communities.”
Coastal Financial Corporation, the parent company of Coastal Community Bank, is based in Everett, Washington. The Bank operates 14 full-service branches across Snohomish, Island, and King Counties. It also maintains a loan production office in King County and offers services through its internet and mobile banking platforms.
The Bank’s CCBX segment provides banking as a service to digital financial service providers and companies seeking to offer financial services to their customers. Coastal Financial Corporation is publicly traded on Nasdaq under the symbol CCB.
The SBA 7(a) loan program is a cornerstone of small business financing in the United States. It offers guarantees to lenders, reducing their risk and encouraging them to lend to small businesses. These loans can be used for a variety of purposes, including working capital, purchasing equipment, or acquiring real estate. By facilitating access to this program, Coastal Community Bank is directly addressing a critical need for many entrepreneurs.
This strategic move by Coastal Community Bank is a clear demonstration of its commitment to community reinvestment and economic empowerment. The $5 million allocation is expected to generate a ripple effect, supporting not only the direct recipients of the loans but also contributing to broader economic growth and job creation within the region. The Bank’s focus on businesses that may struggle with traditional financing channels is particularly noteworthy, as it targets a segment of the market that often faces significant hurdles in accessing capital.
The partnership with the Solomon Hess SBA Loan Fund ensures that the investment is channeled effectively to support job creation and retention in low- and moderate-income communities. This targeted approach aligns with the broader goals of economic development and aims to foster sustainable growth for small businesses. The initiative represents a tangible step towards strengthening the economic fabric of Snohomish and King Counties.
Coastal Community Bank’s investment is set to play a vital role in enabling businesses to overcome financial obstacles and pursue ambitious growth strategies. This proactive approach to community investment underscores the Bank’s understanding of the essential contribution of small businesses to a thriving economy.
