A new small loan program from the state Department of Commerce will make up to $13 million in capital available to small business owners with a “pay as you earn” repayment model. 

The Revenue-Based Financing Fund, or RBF, comes from the $163 million the U.S. Department of the Treasury puts into the State Small Business Credit Initiative (SSBCI), according to a release. The state is partnering with economic development nonprofit Grow America to administer the fund. 

Unlike a traditional bank loan, RBF loans will offer highly tailored repayments that are customized to a business’s needs and adjust to the business’s net income as it changes. State officials say they expect the loans to be especially helpful for seasonal businesses, such as event venues, florists, caterers and tourism-focused enterprises. 

“Instead of fixed monthly payments, businesses repay based on what they actually make,” said Commerce Director Joe Nguyễn in a statement. “So if sales slow down, payments stay low. If business picks up, payments adjust. It’s flexible, it’s fair, and it’s the kind of practical solution we need to support small businesses across Washington.” 

Borrowers can apply for this program through Washington’s Revenue-Based Financing Fund – Grow America. More information about all of Washington’s SSBCI programs can be found on the Commerce website at Access to Capital for Washington State Companies.