The Lewis-Clark Valley is home to a number of commercial lenders, from local home-grown banks to branches of large banks. Part of what sets them apart from other, more urban markets is their individual commitment to business customer service. Many Lewis-Clark Valley lenders are very active in the community, and they appreciate the value of a healthy economy to the quality of life for local residents. Business managers can expect to develop long-lasting relationships.

Tax Increment Financing

Under statutorily specified circumstances, municipalities in Idaho and Washington are authorized to establish urban renewal districts and issue general obligation bonds to finance a variety of improvements within the designated area which can support and enhance new business investment. As investments are made and property taxes rise as a result of increased property values, a portion of the increase in tax revenues (tax increment) is diverted from the taxing districts to repay the bond indebtedness.

There are many eligible uses for the bond proceeds, including street, water and sewer construction; historic preservation; parking, terminal and dock development; and many other activities. The enabling statutes differ in the two states.

Tax Exempt Bonds

Small issue industrial revenue bond (IRB) financing can be arranged for Lewis-Clark projects at Washington or Idaho locations. Manufacturing and processing operations are eligible to utilize IRBs to finance up to $10 million in capital investments, including property acquisition, construction or building improvements, machinery and equipment purchases, and related design, accounting, legal, and financing costs. A key feature of this credit source is that interest income to bond buyers is not subject to federal income tax, resulting in a market willing to accept lower rates of interest. Floating rate IRBs are typically about 75% of prime; fixed rate IRBs may be 2% below prevailing conventional interest rates. In Washington, it also is possible for credit-worthy companies to finance equipment-only purchases as low as $250,000.

Port District and Private Build-to-Suit

Three Port districts and other private property owners in the Valley can finance building and infrastructure development to meet company requirements. This can be a particularly beneficial resource for expanding companies to preserve their own capital for operating needs.

Subordinated Small Business Loans & Guarantees

There are a variety of local, regional, state and federal loan and loan-guarantee programs available for business expansions into the Lewis-Clark Valley. Loan minimums are as low as $500 and maximums over $1 million. In most cases, these funds participate with local banks to meet the credit need of Valley companies. Companies establishing operations in the Lewis-Clark Valley have access to personalized assistance with identifying the most desirable fund sources, and with packaging the loan applications.

Developmental Infrastructure

In addition to many of the financing sources outlined above, local governmental entities and Ports have access to capital for infrastructure developments and improvements. These projects may include water and sewer lines, waste treatment facilities, pollution-control, street and road improvements, and other infrastructure needs. By coordinating developments, hiring plans and other start-up activities with local public entities, qualifying companies can receive significant financial offsets to support their operations. Public funding sources include revenue bonds, Community Development Block Grants, Tax Increment Financing (Idaho locations), Community Economic Revitalization Board financing (Washington locations), and a variety of other state and federal programs.