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Gov. Gregoire signs bill to promote minority businesses

For Immediate Release: May 6, 2005

OLYMPIA � May 6, 2005 � Gov. Christine Gregoire today signed a bill that doubles the Linked Deposit Program�s lending authority to $100 million for women- and minority-owned business enterprises.

�This program encourages banks to make loans to certified minority- and women-owned businesses at below-market rates,� Gregoire said. �We must act to spur women- and minority-owned small business in Washington, both for the benefit of the business owners and for the benefit of the state�s economy.�

The Linked Deposit Program was created in 1993. Certified minority- and women-owned businesses can obtain reduced interest rate loans from participating financial institutions.

The State Treasurer is authorized to use up to $100 million of short-term state treasury surplus funds. These funds are deposited with banks as certificate of deposits on the condition that the banks make "qualifying loans" under the program. The interest rate charged to the minority- or women-owned businesses receiving the loan are two percentage points below market interest rates.

Under the current program, more than 4,000 people are employed. There is a waiting list of about 11 months and $7 million.

�The benefits of the program to a small disadvantaged business such as GHA are tremendous,� said Duane Hill, an owner of Griffin, Hill & Associates, a management-consulting firm in the Seward Park area of Seattle. �The benefits of the program would materially contribute to my firm's ability to create and save jobs. The savings under the program would greatly reduce my company's expenses and lead to increased profits, which would lead to our firm's ability to hire more employees, pay our monthly office expenses and expand our business.�