Grow Your Business

GROW your business

Do you want to expand your business?

Expanding a business can require many different things, including money, employees, new locations, and new markets.

Money

Money can come in the form of loans, invested capital, tax incentives, bonds, and other forms. For one-on-one assistance to discuss financing options, consider meeting with the Washington Center for Women in Business or SCORE advisor (free and confidential). For general financial information, see the following links:

Loans

There are a variety of business lenders, lenders that offer financing for small businesses. That is why it is important to research and ask questions to determine what type of loan product your business may need and which lender may offer it. All banks have unique specialties for either specifics type of businesses or bank products (credit card, Line of Credit, Loan, Home Equity Loans, Commercial Loans). “SBA loans” are loans made through commercial banks and credit unions that are guaranteed by the federal government, in this case the U.S. Small Business Administration. The U.S. Department of Agriculture has business loan guarantee programs that are handled similarly.

Business loans typically require the “5Cs”

Before lending money, reputable financial institutions will want to know that certain conditions are met, frequently referred to as the 5Cs:

  • Capital or Cash – This is the owner’s cash investment.
  • Capacity and Cash Flow – This is the business’ ability to repay the loan. Capacity will show evidence that the business owner has sufficient cash flow to handle regular costs and take on the new debt. For existing businesses, the firm’s financial records will be important for demonstrating profitable operations and good financial management. A cash flow projection is usually required for both new and established businesses. The projections need to show the ability of the business to meet its financial obligations, including making loan payments, and to withstand unexpected events.
  • Collateral – The owner needs to pledge something of value. Collateral accepted on a business loan can vary based on the application and the lender but may include any of the following or a combination; cash, equity in the business, business property, furnishings, fixtures, equipment, or inventory, plus owner assets outside of the business (real estate, stock, etc.). The requirement varies based on each lender.
  • Character – Like any other loan, most all lenders will review credit as part of the qualification process. Until a business establishes business credit, the lender will review an owner’s personal credit history for the loan application.
  • Conditions – The lender will also want to see if the overall environment (economy, industry trends, and market forces) supports the business’s potential for success.

Business lenders

  • Banks and credit unions for standard commercial loans.
  • Banks and credit unions for SBA 7a loans (can be used for any business purpose) and U.S. Department of Agriculture guaranteed loans.
  • Community Development Financial Institutions (CDFI) helps communities thrive economically by providing essential access to basic financial services, affordable credit, and investment capital, particularly for low-income communities and individuals who have historically faced limited access to these resources. WA CDFI list.
  • U.S. Small Business Administration Microloans (loans up to $50,000 for any business purpose).
  • U.S. Small Business Administration 504 lenders (for real estate and major equipment purchases): Northwest Business Development Association, Evergreen Business Capital, Ameritrust CDC.

Investment capital

Many businesses grow using funds from investors. The word “investor” implies that the individual or group has partial ownership of the business. The act of securing investors and private lenders, whether family members, friends, or strangers, is highly regulated and requires an understanding of securities laws.

Because this type of fundraising is regulated, it usually takes time, planning, and careful paperwork. The Washington State Department of Financial Institutions (DFI) can help businesses understand the rules, available options, crowdfunding, and pre-filing support.

Below are some groups in Washington that connect investors with entrepreneurs. There is a comprehensive list of resources on the Startup website.

Washington State offers limited financial assistance in the form of grants and loans, bonds, incentives, and tax exemptions for some industries.

Small Business Assistance (SBA) grants are available to help cover costs associated with employees who take approved Paid Family and Medical Leave.

There are two types of Small Business Assistance grants, based on the size of your business. One grant for businesses with less than 50 employees and one for businesses with between 50 and 150 employees.

Businesses with less than 50 employees who receive a grant will be required to pay the employer portion of the Paid Leave premiums for 3 years from the date of the grant approval. Businesses with 50 or more employees already pay the employer portion.

Businesses certified as Woman or Minority Owned Businesses are eligible for the Washington State Office of Minority and Women’s Business Enterprises Linked Deposit Program. This program grants certified businesses access to affordable capital with an interest reduction of up to 2% through participating lenders. Veteran and Service Member Owned Businesses are eligible for the Veteran Linked Deposit Program.

Employees

Having employees with the right attributes and skills for your business is critical for successful growth. There are resources to help you with employment planning, including Labor Market Information.

Providing employee benefits, such as health insurance, can help a business owner recruit talented employees and keep valuable ones. The Washington Health Benefit Exchange offers resources to help you learn about individual health coverage options and/or can connect you with a certified broker to help you find the right plan for your business. (See section Employee Benefits – Health Insurance under “Plan Your Business”).

In addition, offering employees options for Retirement Savings keeps your business competitive, may provide you with tax incentives, and is easy and affordable to set up through the Retirement marketplace.

There are also programs to help you find and train qualified employees:

Setting up required employer accounts

To set up workers’ compensation insurance, it is necessary to update your Washington State business license.

Update your Washington State business license with the Washington State Department of Revenue/Business Licensing Service and indicate you are going to have employee(s). For customer service, call 360-705-6705.

If you say YES to hiring employees in your application, workers’ compensation and unemployment insurance accounts will be automatically opened. To submit a new hire report, employers need to include the following:

  • Employer’s Name
  • Employer’s Address
  • Employer’s Federal Employer Identification Number (FEIN)
  • Employee’s W-4 Form
  • Employee’s Name
  • Employee’s Address
  • Employee’s Social Security Number (SSN)
  • Employee’s Hiring Date
  • Employee’s Date of Birth
  • Once the application and employee endorsement is processed, the Washington State Department of Labor & Industries (workers’ compensation) and Washington State Employment Security Department (unemployment insurance) will open up accounts for the business in 2–4 weeks. You will receive a packet in the mail from L&I with your account number, your rates, and contact information for your Washington State Department of Labor & Industries account manager. You will also receive the required Washington State Department of Labor & Industries workplace posters to hang in your workplace. If you have employees working remotely, you can email them PDF versions of the posters found here as well as access a list of other required federal and state posters.
  • When the time comes, file your workers’ compensation insurance quarterly reports online here. The due dates you need to report by are:
    • April 30 for Quarter 1 (hours worked from January 1 – March 31).
    • July 31 for Quarter 2 (hours worked from April 1 – June 30).
    • October 31 for Quarter 3 (hours worked from July 1 – September 30).
    • January 31 for Quarter 4 (hours worked from October 1 – December 31).

Report all new employees (including part-time and temporary) to the Washington State Department of Social and Health Services (DSHS) New Hire Reporting Program within 20 days of hire. Reporting new hires helps the Division of Child Support collect support more efficiently. Timely reporting of all newly hired and rehired employees is intended to reduce instances of unemployment insurance fraud and worker's compensation fraud by terminating those benefits paid for by employers when the employee goes back to work. New Hire reporting is required by federal and state law and directly benefits families with faster income and employment information for child support cases.

Other information and resources for employers

Employment is an area of significant regulation, including minimum wage, overtime pay, employment of minors and family members, workplace safety, nondiscrimination, etc.

If you are facing a temporary decline in business, the SharedWork Program offers you an alternative to laying off workers. Instead, you can reduce the work hours of your permanent employees, and the workers can collect partial unemployment benefits to replace a portion of their lost wages.

The use of independent contractors is a frequently misunderstood area. Reporting someone’s employment with a 1099 form does not necessarily make them an Independent Contractor. All your workers in Washington are entitled to workers’ compensation insurance, paid by you, unless they fit a strict legal exemption. To be an independent contractor, someone must pass what is called the “6-part test” (seven for construction), and all parts of the test must be true to be an independent contractor.

Employment is also an area of significant recordkeeping and tax responsibilities. It’s important that you understand the regulations and costs as you plan and operate your business.

Labor law

Worker benefits

NOTE: Many regions across Washington state have a local minimum wage rate. If there is a higher rate, the more generous wage must be applied. Check your local ordinances to see if there is a local minimum wage. For a current list, visit the local minimum wages section of the Washington State Department of Labor and Industries website.

New locations

Choosing new locations requires you to consider many factors: market desirability, zoning, build-out costs, on-going occupancy costs, access to infrastructure and services, access to qualified employees, etc. Below are tools that will help you make an informed decision.

New markets

General market expansion assistance: Whether you’re considering expansion through new products or services, new customer groups, or new marketing methods, conducting demographic and other types of research prior to moving forward can help you make better and more cost-effective decisions. Do you want assistance with research or development of an expanded marketing plan?

Export assistance: Do you want to sell products or services to customers outside of the U.S.?

Contracting with the state: What businesses should know

  • The Washington State Department of Enterprise Services (DES) aims to make state contracting more accessible, transparent, and inclusive by removing barriers, expanding opportunities, and strengthening local communities through public spending.

Why contract with the state

  • Long-term customers: State agencies are ongoing partners that can provide repeat business.
  • Grow and diversify your business: Government contracts can help you expand your customer base.
  • Make a direct impact in your community: When you contract with the state, your work helps deliver services, infrastructure, and programs that support people across Washington.
  • Access tools, training, and support: DES offers training, technical assistance, and networking opportunities to help you learn the state contracting process and connect with agency purchasers.

How to get started

Register for business in Washington's Electronic Business Solution (WEBS):

  • WEBS is the state’s online portal for searching for and bidding on solicitations. Solicitations will come to you via email. Not all counties, cities, and municipalities post their solicitations on WEBS, so please visit their websites to learn more about their contract opportunities.

If you are a construction and public works company, Get registered with the Municipal Research and Services Centers (MSRC) rosters.

  • Small works roster: Public works and construction
  • Consultant roster: For architectural/engineering, communications, consulting, and personnel companies
  • Vendor roster: For goods, services, and maintenance companies
  • Also check out:
    • Public Works Business Diversity Program: How we’re working to remove barriers for Washington state small, minority-, women-, and veteran-owned businesses to participate in engineering, architectural, and public works contracts and subcontract.
    • Washington EDGE: The Washington Encouraging Diversity, Growth, and Equity (EDGE) pilot program is for small construction businesses interested in public works prime

Free virtual training:

Apply for socioeconomic certifications:

Stay in the know: Sign up for DES’ Business Diversity newsletter. Each month, we share up-to-date resources for small, diverse, and veteran-owned businesses. This month, we have information for you on several contracting topics, including training opportunities, bid opportunities, and upcoming events.

  • Prevailing Wage Requirements – Are standard for construction-related contracts, paid for with public funds (all or in part). Public works contractors are required to pay employees at or above the “prevailing wage” that has been established through formal government surveys. Employers must also meet special reporting requirements.
  • Small Business Development Center (SBDC) – Advisors offer one-on-one, no-cost advising.
  • Northwest Native APEX Accelerator – helps Native firms with federal, Tribe, state, and local government contracting through one-to-one assistance with government certifications and registrations, classes and workshops, bid match opportunities, interpretation of solicitations, bid/proposal reviews, marketing advice, and contract performance support for designated socio-economic programs.
  • Washington APEX Accelerator: Offers free training and advising on all government contracting matters.

The Washington State Office of Minority and Women’s Business Enterprises

The Office of Minority and Women’s Business Enterprises (OMWBE) leads the Statewide M/WBE program as the sole agency that certifies minority- and women-owned business enterprises to participate in public contracting and procurement. This program includes a comprehensive certification process, small business support services, and the Supplier Diversity team that works with the Governor’s Subcabinet on Business Diversity, state agencies, and institutions of higher education to instill equitable and inclusive purchasing practices.

These efforts help small businesses owned by minorities, women, and veterans to obtain more government contracts which strengthens our communities, makes our economy more resilient, and improves the quality of life for all Washingtonians.

State

MWBE – Minority Women Business Enterprise, owned by minority women.

MBE – Minority Business Enterprise, owned by minority men.

WBE – Women Business Enterprise, owned by non-minority women.


CBE – Combination Business Enterprise, owned by a combination of non-minority women and minority men.


SEDBE – Socially and Economically Disadvantaged Business Enterprise, owned by non-minority men found to be socially and economically disadvantaged on a case-by-case basis.


PWSBE – Public Works Small Business Enterprise, owned by economically disadvantaged individuals. This program is race- and gender-neutral, similar to Federal SBE certification.

LGBTQBE - LGBTQ Business Enterprise, owned by LGBTQ+ individuals.

Federal

DBE – Disadvantaged Business Enterprise, for socially and economically disadvantaged individuals.

ACDBE – Airport Concession Disadvantaged Business Enterprise, for DBE concessionaires located at airports

SBE – Small Business Enterprise. This race- and gender-neutral program for small businesses is also known as ‘FSBE’ for Federal Small Business Enterprise. Any businesses applying for DBE certification with OMWBE also receives Federal SBE certification.

OMWBE Certification

 

The Washington State Department of Veterans Affairs wants to thank you for your service to our country. We are committed to providing you with the information you need and invite you to e-mail or call if you or someone you know needs assistance. If you are also a business owner, you should know that Washington State agencies purchase from Veteran or Service-member Owned Businesses. By linking the WDVA Certified Veteran and Service-member Owned Business list to WEBS, state agencies will now have a way to identify WDVA Certified Businesses AND keep track of how they’re doing toward their purchasing goals. The Washington State Department of Veteran Affairs has teamed up to streamline the registration and certification process for vendors who want to do business with Washington State agencies and municipalities.

Veteran Owned Business Certification

Regulatory compliance

Growing a business may lead to new regulatory requirements. Review the “START” and “RUN” chapters of the Small Business Guide to see if additional regulations may apply due to the nature of the changes in your business.

We wish you success!

Growing a business brings with it rewards, both personal and financial. Planning growth carefully and taking advantage of resources and assistance will help increase your opportunities for success.

Need assistance?

State of Washington Small Business Liaisons can help you get the information and resources you need.

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We offer the Small Business Guide as a PDF and in several languages and as a braille ready format, those versions can be found on the Small Business Guide download page. If you would like a printed copy of the Small Business Guide but cannot create your own or you would like a braille printed copy please reach out using the one of the methods from the Contact Us page or live chat with us.