Community & Economic Development Dept Works With Non-Profit Partners to Boost Small Business Economy

Tacoma, Wash. –Tacoma businesses now have a new way to use community support as a catalyst for growth. Community Sourced Capital and Craft3, with whom the City of Tacoma’s Community and Economic Development Department has partnered for eight months, have joined forces to strengthen small businesses through a matching-capital program. 

"This is a tremendous opportunity for Tacoma small business owners and is one of many great examples of how our City government and alternative lenders are working together to grow the economy and create jobs," said Community and Economic Development Department Division Manager Carey Jenkins. "We expect that this partnership will be a very successful one."  

Community Sourced Capital’s local lending web platform enables businesses to source low-cost loans between $5,000 and $50,000 directly from community members, and Craft3 will match, one-for-one, every dollar raised from the community, doubling the amount of funding businesses can access from community members.

Businesses running campaigns on Community Sourced Capital’s platform can invite local community supporters to buy $50 increments of the target loan, called squares, and Craft3 matches the amount raised by a business up to $25,000 for a total loan of up to $50,000. Community lenders and Craft3 are paid back monthly as the loan is repaid by the business.

This partnership aims to amplify the impact of small business loans. When squareholders contribute to a small business, it is an indication that it’s the kind of community business Craft3 looks for as a borrower.

Craft3 uses the credibility established through community loans to contribute additional capital, thus lending money to businesses alongside squareholders. After repaying a smaller loan to their community, many Community Sourced Capital borrowers have graduated to receive larger loans from Craft3. 

Questions or requests for additional information can be directed to Contract and Program Auditor Jacinda Howard in the Community and Economic Development Department atjhoward@cityoftacoma.org or (253) 591-5221.