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Linked Deposit Loan Program

Program Overview and Background

The Washington State Legislature found that minority and women owned businesses had been historically denied access to capital and that lack of capital is a key barrier to the development of minority and women owned businesses. In response, the legislature passed the 1993 Minority and Women Owned Business Assistance Act, which created the Linked Deposit Program ("LDP"). The Act directs the Office of the State Treasurer ("OST"), and the Office of Minority and Women's Business Enterprises ("OMWBE") to operate a program that links the deposit of state funds to loans made by participating financial institutions to qualified minority and women-owned businesses. The deposit of state funds is made at below market rates. The savings are then passed on by the bank to the Linked Deposit borrowers in the form of an interest rate reduction of two percent (2%)1.

Program Eligibility

Any firm currently certified by OMWBE as a Minority Business Enterprises (MBE), Women's Business Enterprise (WBE), Minority Women's Business Enterprise (MWBE), or Combined Business Enterprise (CBE) is entitled to the Linked Deposit benefit. Any business related loan carried by a certified firm, and made by a participating lender, is eligible for enrollment in the program. A firm must be certified by OMWBE before their business loan can be enrolled in the program. To learn more about certification and eligibility criteria visit the OMWBE Certification Page. Please note, the LDP is not a loan or loan guarantee, and the State cannot help a firm obtain a business loan. Firms must satisfy their bank's financing/loan criteria. The LDP allows a certified firm to receive an interest rate reduction on existing business loans made by a participating lender. For loan eligibility, contact your financial institution.

How the Program Works

The State Treasurer is authorized to use up to $175 million (as of 6/12/08) of the State's short-term surplus funds to purchase certificates of deposit in an amount equivalent to the amount financial institutions loan to certified minority and women's business enterprises. The LDP "links" the State's surplus fund deposits to the commercial loans that financial institutions make to certified minority and women's business enterprises. Two percent (2%) of the interest that is earned on the State's certificate of deposit is used to reduce the interest rate that would otherwise be charged to a certified business for its loan or other financing. Effectively, the State buys certificates of deposit equal to the amount lent to certified firms. The State then forgoes 2% of the interest it would earn on the CDs and the banks transfer the savings to the certified firms in the form of an interest rate reduction.


  • Businesses participating in the LDP must be certified by OMWBE or the Department of Veterans Affairs (DVA).
  • Businesses must satisfy their participating bank's lending criteria.
  • Qualifying loans include:
    • Lines of credit
    • Financing of accounts receivable
    • Working capital
    • Equipment purchases
    • Real property acquisition
    • Other business related financing
  • $1 million per-loan maximum; no limit on the number of loans a firm may have. $5 million lifetime maximum per person.
  • Interest rate: Two percent (2%) below the market rate for a commercial loan (determined by the bank).
  • Loan term: Up to 10 years.
  • Participants decertified by OMWBE will have their loans removed from the program, at which time they will lose the interest rate reduction.

Any qualified public depository, who is signed up through the Automated Clearing House, is able to participate in the Linked Deposit Program. Bank representatives are encouraged to contact the Office of the State Treasurer to register their bank as a Linked Deposit lender in order to offer the program to OMWBE certified firms and Veteran or Servicemember Business Owner customers. Borrowers should contact their bank to determine if it currently offers the Linked Deposit Program to its customers.

For more program information contact Caleb McInvaille at or 360-664-9751.

Download the Linked Deposit Loan Enrollment Form

Participating Banks

  • 1st Security Bank of Washington
  • Bank of the Pacific
  • Columbia State Bank
  • EastWest Bank
  • Heritage Bank
  • Key Bank
  • Liberty Bay Bank
  • River Bank
  • UniBank
  • US Bank
  • Washington Trust
  • Wells Fargo

Eligible Banks & Credit Unions

A bank or credit union must be a Qualified Public Depository. For a list of public depositories:

When it started, the Linked Deposit Loan Program required banks to give business owners the full 2% interest rate reduction. In 2009, due to the market environment the State Treasurer allowed banks to “adjust the rate on Linked Deposit loans until market rates change.” That continued until December 2018. OWMBE and Office of the State Treasurer now require Linked Deposit Loan Program loans have the full 2% interest rate reduction.