Fee needed now for top grant writer for the Spokane Neighborhood Economic Development Alliance

Incredibly, of the $2.5 billion awarded in March, none was distributed directly in Washington. None in Idaho. None in Montana. None in Oregon.

This is the second go-round of New Markets funding. Applications are due the end of September.

For SNEDA it takes money to make money, Bert Caldwell finds

Ante up, Spokane.

Bert Caldwell
The Spokesman-Review

Eric Loewe, executive director of the Spokane Neighborhood Economic Development Alliance, has two days to raise $50,000. That’s the going rate for consultants with the experience to write a grant application for the New Markets Tax Credit Program.

At stake, a $3.5 billion pot of credits from the U.S. Department of the Treasury for those who invest in businesses in low-income areas. SNEDA is a Community Development Entity qualified to apply for the funds.

This is high stakes for the organization, which provides financial and technical assistance to small businesses through the city’s four community centers. SNEDA loans also support four child-care centers.

This is the second go-round of New Markets funding. Applications are due the end of September.

Incredibly, of the $2.5 billion awarded in March, none was distributed directly in Washington. None in Idaho. None in Montana. None in Oregon.

The region’s only hope is to attract credits awarded entities in other states.

Loewe wants to do what he can to avoid a repeat of that shutout, but the odds are long and the time is short. Thursday is SNEDA’s self-imposed deadline for scraping together the grant writer’s fee. Putting together a solid application will take two months, he says, and firms best qualified to write grant applications may already be committed to other clients if SNEDA waits much longer.

The organization has met with five consultants, four of whom secured money for clients in the first round of funding.

Loewe adds that the benefits of working with a successful grant writer go beyond crafting the application. The same people often have Washington, D.C., contacts, and connections with investors and attorneys who might be able to help.

The credits_ 39 percent over seven years — give investors some shelter should a venture succeed, or relief in case of losses because the credits apply win or lose. In other words, someone who sinks $100 into a business is assured at least $39 will be recouped.

The investment, loan or equity, must be at least seven years in duration.

Backing businesses in much of Spokane, including those in downtown and much of the East Central and lower North Side neighborhoods, could qualify investors for the credits. The grant application must include a list of the investments SNEDA is trying to qualify. The strength of those projects will determine the strength of the application.

Most will likely be commercial real estate ventures. Before they abandoned the project, Ron and Julie Wells’ mixed-use downtown high-rise was among the potential candidates. Loewe says there are several others. The next two months will be spent negotiating terms.

Once SNEDA has approved the projects that will be included in the application, its role is minimal unless the Treasury does not grant all the money sought. Then, the organization’s board of directors would have to decide if jobs, for example, are a priority. Maybe historic preservation figures in the mix.

The credits, Loewe stresses, are not there for the taking. "It’s a brutal competition," he says, which explains the desire to retain a grant writer that has succeeded in the past.

In the first round, there were 347 applications worth a total $26 billion, more than 10 times the $2.5 billion awarded, according to figures from the Treasury Department. There were 66 successful bidders.

Millions of dollars could be put to work. But first that tax deductible $50,000 must materialize.

Loewe says some funds — not nearly enough — have been pledged. The opportunity is unique.

"There are very few national tools of this magnitude," Loewe says, puzzling over why the Northwest has not more aggressively pursued such assistance.

"This is a benefit to everyone in the community," he says.

Admittedly, this is a gamble. But Spokane has thrown a lot more at consultants when much less was at stake. Not trying would be a shame.

http://www.spokesmanreview.com/news-story.asp?date=072903&ID=s1388010&cat=section.business