Request legislation from the Office of the State Treasurer to modernize Washington state’s Linked Deposit Program (LDP) passed out of the Washington House of Representatives Friday on a vote of 96-to-2. Sponsored by State Senator Joe Nguyen (D-White Center), Senate Bill 5787 will diversify depositing options to the LDP, which encourages lending to businesses certified by the Office of Minority and Women’s Business Enterprises (OMWBE).
“The linked deposit program has served as a vital instrument in removing barriers to the development of minority-owned businesses,” said Nguyen. “By sustaining opportunities to access this program, we do our part to accelerate economic justice for historically disenfranchised communities.”
The LDP authorizes the State Treasurer to purchase certificates of deposit (CDs) in order to reduce interest rates on loans given to eligible OMWBE certified borrowers by up to two percent (2%). SB 5787 will authorize depositing options with key LDP partners beyond only the use of CDs and ensure the continued health and function of the program.
“My office is focused on how we can fix complicated laws to adapt to economic conditions in ways that give Washingtonians better access to capital, and thus make life better and more equitable for the working families of this state,” said Washington State Treasurer Mike Pellicciotti. “Due to the legislature’s passage of this law today, this program can continue to be an important resource for minority, women, and veteran-owned businesses.”
In the Senate, SB 5787 passed on a vote of 43-to-0. The legislation now heads to the Governor and awaits signature for final enactment.