Foster Ignition Fund
Ascend Seattle’s newest program provides capital to local businesses
by Martha Flores Perez
In 2017, Mari Borrero started American Abatement & Demo with three employees in Auburn, WA. She and her team have worked hard to grow the business, chasing contracts and Mari signing up for all business education opportunities that came her way. Seattle City Light first sponsored Mari in 2019 to be part of the Minority Business Executive Program. Since then, she has completed several Ascend Seattle and UW’s Consulting and Business Development Center programs. Her efforts are paying off; she now has 14 employees and is the first Black, Indigenous, People of Color (BIPOC) business to be awarded a loan through the UW’s Foster Ignition Fund & Commerce Bank Loan Partnership. She says, “I can do the work, give me access to the capital, the opportunity to that, and I can grow my business even more. So, what the Ignition Fund does is it provides a bridge of hope for my business to continue!”
The University of Washington’s Consulting and Business Development Center, The Commerce Bank of Washington, and several generous donors have raised over $100,000 to create a loan loss reserve fund. They partnered with The Commerce Bank of Washington to provide interest rate equivalent loans to businesses typically labeled too risky. Moreover, this program does not just provide access to capital. Through a newly launched MBA-level course entitled “The Power of Access: Impact Lending to Underserved Communities” the program pairs BIPOC businesses with MBA students to help businesses secure debt financing. Students are guided by Foster School faculty and industry experts through a course that covers business assessment, risk analysis, and an exploration of research related to structural challenges that businesses owned by people of color face in accessing credit. Students will complete a financial analysis of companies seeking credit and work with the business owners to project future financing needs. Once this work is completed, students will recommend a select group to The Commerce Bank. Those that qualify for traditional loans will receive them and those that need additional support will be able to secure a loan using the newly created “Foster Ignition Fund.” This program is a win-win for all parties involved; students get away from textbooks and have a real hands-on experience, businesses get their financial injections. Additionally, The Commerce Bank of Washington and UW will invest in local communities. “The Foster Ignition Fund is a unique lending program that will help underserved communities and businesses owned by people of color that may not have direct access to lending in the traditional sense.” Says Jack Unbehend, Director of Commercial Banking & SVP, The Commerce Bank of Washington.
Six more businesses are currently working with MBA students seeking Ignition Fund loans from Commerce Bank. They have agreed to lend $1M to businesses in the program. To prepare for this process, Mari advises, “Get your finances in order, tell your story, present your true numbers.” Lastly, “When a bank says no, keep looking for alternative ways, collaborate, seek out other support systems but do not give up on your dream of being a business owner!”
Watch the Foster Ignition Fund video
