Federal Economic Development Funding Report to the Legislature (Washington Commerce, April 2022)

Summary

Federal Economic Development Funding is a report of the Office of Economic Development & Competitiveness of the Washington State Department of Commerce to the Legislature, tracking federal economic development funds pursuant to RCW 43.330.040 and dated April 2022. It states that Senate Bill 6220 in 2016 required Commerce to track federal economic development funding received and disbursed, that the last report was submitted in 2017, and that this report covers funding received from 2018 through 2021. A table lists federal agencies and programs with award period, grant amount, match requirement and status. It states that Commerce was awarded a $37,000 USDA Rural Business Development Grant, which the department matched with $42,000 of general funds.

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Federal Economic
Development Funding

A report tracking federal economic development funds pursuant to
RCW 43.330.040.

April 2022
OFFICE OF ECONOMIC DEVELOPMENT &
COMPETITIVENESS Report to the Legislature

Director Lisa Brown
V3.0
Acknowledgments

Washington State Department of Commerce
Office of Economic Development &
Competitiveness

Chris Green, assistant director
chris.green@commerce.wa.gov

Karen MacArthur, Financial & Grant Services
manager
karen.mcarthur@commerce.wa.gov

Lynn Longan, Commerce specialist
lynn.longan@commerce.wa.gov

Josh Woodson, Commerce specialist
josh.woodson@commerce.wa.gov

Mary Ferguson, operations manager
mary.ferguson@commerce.wa.gov

Rick Anderson, policy advisor
rick.anderson@commerce.wa.gov

1011 Plum St. SE
P.O. Box 42525
Olympia, WA 98504-2525

www.commerce.wa.gov

For people with disabilities, this report is available
on request in other formats. To submit a request,
please call 360-725-4000 (TTY 360-586-0772)

Federal Economic Development Funding
Table of Contents
Introduction ................................................................................................................................................. 2

Federal agencies and programs ................................................................................................................... 3

Federal Economic Development Funding 1
Introduction
Background
In 2016, the Washington State Legislature passed Senate Bill 6220, which required Commerce to track
economic development funding received from the federal government as follows:

When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer
and thereafter expended only upon the approval of the director. The department must track the amount of federal
economic development funding received and disbursed along with any required state, local, or other matching
requirements and annually provide the information to the economic development committees of the house of
representatives and the senate.

The last report was submitted in 2017. This report provides information on funding received from 2018
through 2021. Going forward, Commerce will submit reports annually.

Federal Economic Development Funding 2
Federal agencies and programs
This section provides background on the federal agencies and programs providing funding to the Washington
State Department of Commerce.

Federal Award Grant Match
agency Program period amount requirement Status
U.S. Small State Trade 9/30/2019 - $900,000 $300,000 Completed
Business Expansion 9/29/2021
Administration Program 2019

U.S. Small State Trade 9/30/2020 - $1,350,000 $450,000 Ongoing
Business Expansion 9/29/2021
Administration Program 2020

U.S. Economic Build Washington 6/1/2017 - $200,000 $201,987 Completed
Development Manufacturing 6/30/2019
Administration Project

U.S. Economic Build to Scale - 10/01/2017 - $500,000 $501,708 Completed
Development Maritime Industry 9/30/2020
Administration Development

SafeStart 10/01/2020 - $15,000,000 N/A Partially
U.S. Economic Economic 9/30/2022 expensed -
Development Recovery and $4,156,806
Administration Resilience expensed
Initiative

Office of 7/01/2019 - $1,100,000 $163,634 Ongoing
U.S. Department
Economic 6/30/2021
of Defense Office
Adjustment -
of Economic
Industry
Adjustment
Resilience

U.S. Department Rural 7/27/20 - $37,000 $42,000 Completed
of Agriculture Development 9/14/2021

U.S. Small Business Administration
State Trade and Expansion Program (STEP)
The STEP grant program has helped thousands of small businesses obtain grants and find customers in the
international marketplace since 2011. Through awards to U.S. states and territories, STEP helps small
businesses overcome obstacles to exporting by providing grants to cover costs associated with entering and
expanding into international markets.

STEP financial support helps U.S. small businesses:

 Learn to export
 Participate in foreign trade missions
 Design international marketing products and campaigns
 Support website globalization and e-commerce capabilities

Federal Economic Development Funding 3
 Pay for subscriptions to services provided by the U.S. Department of Commerce and other federal
agencies
 Participate in export trade show exhibits and training workshops

Washington has received STEP funds for the past 11 years. In the last two years, Washington was one of two
states to receive the maximum $2 million dollar award.

U.S. Department of Commerce
Economic Development Administration (EDA)
Build Washington Manufacturing Project
The purpose of the Build Washington Manufacturing project was to develop a technical assistance program
and business network to support local government entities and small and medium sized business enterprises
in advanced manufacturing in economically distressed areas.

A public/private manufacturing rapid response team implemented the project by:

 Helping small and medium-sized manufacturers get established, stabilize, diversify, expand and grow
jobs
 Creating and maintaining a workforce with the skills required for these new jobs and advanced
manufacturing technology
 Helping commercialize innovative processes and technology, and ensure it is accessible to small and
medium-sized manufacturers
 Developing pilot projects to support manufacturers

Build to Scale
EDA’s Build to Scale (B2S) program furthers technology-based economic development initiatives that
accelerate high quality job growth, create economic opportunities, and support the future of the next
generation of industry leading companies.

In 2017, a $500,000 grant from EDA’s Build to Scale Program helped the Washington State Department of
Commerce develop a comprehensive strategy to accelerate innovation and modernization of Washington's
maritime industry.

Washington Maritime Blue, a Seattle-based nonprofit organization, is the direct result of this grant. Maritime
Blue is working to position Washington as a global leader in maritime innovation and sustainability. Seattle is
the fifth largest U.S. seaport and has a maritime industry valued at $38 billion.

SafeStart Program
A $15 million grant from the U.S. Economic Development Administration supported several initiatives aimed at
fostering collaboration among public, private and philanthropic organizations to help keep small businesses
open and protect and create jobs while looking ahead to strengthen key sectors in the future. This was one of
the largest such grants in the nation. Notable work under this grant includes:

The Innovation Cluster Accelerator program (ICAP). Built on an internationally proven model, it is the first
state-supported program of its kind in the nation. Innovation clusters are industry-led consortia that bring
together leaders from the private sector, entrepreneurs, investors, academia and government to solve
challenges, pursue market opportunities, and drive innovation.

Federal Economic Development Funding 4
Nine innovation clusters were selected for this program:

 Clean Tech Built Environment Cluster. Led by the CleanTech Alliance to advance the development and
adoption of clean technologies that decarbonize the built environment.
 Advanced Technology Cluster. Led by the Washington Technology Industry Association to grow
advanced tech in Washington using quantum computing and blockchain.
 Consortium for Hydrogen and Renewable Generated E-Fuels Cluster. Led by Washington State
University's JCDREAM to explore the use of hydrogen in heavy-duty transportation, aviation and
shipping.
 Washington VERTical Cluster. Led by the Port of Benton to accelerate the transition to renewable
energy production through nuclear power.
 Evergreen Bioscience Innovation Cluster. Led by Greater Spokane, Inc., to advance the life and health
science industry from research and development to workforce.
 Enterprise Digital Growth Ecosystem Cluster. Led by the 5G Open Innovation Lab to use edge
computing and 5G to digitally transform the agriculture, energy and utilities, healthcare, manufacturing,
and transportation and logistics industries.
 Sustainable Aerospace Technologies and Energies Cluster. Led by the Aerospace Futures Alliance to
advance the use of sustainable aviation fuels, electrified aircraft and hydrogen-powered aviation.
 Pacific Northwest Aerospace Cluster. Led by the Pacific Northwest Aerospace Alliance to advance the
state's aerospace manufacturing industry.
 Washington Autonomous Vehicle Cluster. Led by the Kitsap Economic Development Alliance with the
focus on accelerating deployment of unpiloted and autonomous vehicles, including waterborne craft.

The Washington Opportunity Network (WON). WON enhances connections between small businesses,
technical assistance providers and investors, with a focus on strengthening pathways to success for small
businesses furthest from opportunity. The network identifies gaps and solutions, such as finding and
implementing new financial products and connecting small businesses with accessible and culturally
appropriate resources. WON's focus is supporting small business recovery and building resilience for
entrepreneurs facing systemic and historic barriers.

U.S. Department of Defense
Office of Economic Adjustment
Industrial Resilience program
The Industry Resilience program assists communities responding to defense changes, specifically canceled
contracts or failure to proceed with a previously-approved weapons system. In many cases, these reductions in
defense spending directly affect the defense manufacturing base and can trigger assistance provided under
this program.

Washington Manufacturing Services and Community Attributes Inc. were awarded funds to focus on
strategies, business development and economic diversification, as well as assisting in other relevant federal
assistance programs to support local economic development in communities impacted by defense program
changes.

With Industry Resilience assistance, state and local partners can help defense manufacturers develop and
manufacture new products, capture new investments, and develop new technologies. These efforts help
modernize the military and maintain a technological edge against adversaries.

Federal Economic Development Funding 5
In addition to assistance with economic adjustment and recovery, the Industry Resilience program helps
communities strengthen the economic and cyber resiliency of local defense industry supply chains. In today’s
globalized marketplace, the defense industrial base is a core national security asset. Local defense suppliers
are critical to the modernization and war readiness. They supply military forces with the best equipment, most
advanced technologies and the highest level of service.

U.S. Department of Agriculture
ScaleUp
In May 2020, the Washington State Department of Commerce was awarded a $37,000 USDA Rural Business
Development Grant, which the department matched with $42,000 of general funds. This funding provided
augmented ScaleUp training to 292 businesses in rural counties, instead of the original goal of 75.

ScaleUp is a three-part training series designed for businesses that want greater profitability and growth. The
trainings were reduced to a virtual one-day "study hall" due to the COVID-19 pandemic. Businesses worked with
a professional trainer on economic recovery and resiliency strategies. The Thurston Economic Development
Council owns the curriculum, which is based on the Kaufman Foundation’s Entrepreneurial Series.

Federal Economic Development Funding 6

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