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Commercial Exterior Improvement Program


The City of Federal Way currently offers three programs that use CDBG funds to directly assist local businesses: Small Business Loan Program, Microenterprise Loan Program, and the Commercial Business Exterior Improvement Program. The Community Development Block Grant (CDBG) program is sponsored by the U.S. Department of Housing and Urban Development (HUD) and it is administered locally through the City of Federal Way.

The Commercial Exterior Improvement Program is designed to provide a financial incentive to property owners and business owners for improvement and/or renovation of commercial building facades; roof repair; removal of exterior code violations; awning installation; exterior painting; and improvement of attched outdoor lighting and/or signage; etc. Generally, up to $10,000 in assitance is provded in the form of a zero-interest, deferred loan, which must be matched dollar-for-dollar by the applicant. The project cannot expand the existing structure or footprint of the business.

The City of Federal Way Council has designated the City of Federal Way CDBG Loan Review Advisory Committee (LRAC) as responsible for the review of all CDBG Loan Fund requests. Funding decisions relative to all CDBG loans shall be made by the City Council upon a recommendation by the LRAC and the Mayor. All project funding is on a first-come, first-served basis while program funding is available. The City Council makes decisions annually to re-capitalize CDBG program funding.

Fill out the online application to apply to the Commercial Business Exterior Improvement Program.

For further information, contact Community Services Manager Jeff Watson at (253) 835-2650, or jeff.watson@cityoffederalway.com.



Available Program Funds
For 2013, $100,000 has been programmed by the City of Federal Way for investment.

Eligible Applicants
Building owners or leaseholders in all commercial sectors may be considered to participate in the program. See program procedures.

Depending upon amount, up to 5 years, zero-interest forgivable loan.

Project Funds Available
Up to $35,000 per building, matched by the applicant. Additional funding will be considered on a case-by-case basis depending on the project proposal and available program funds. Applications below $2,000 will not be considered.


  • Application Fee: $200.00
  • Loan Origination Fee: $150.00, or 0.25% of the loan amount, whichever is greater
  • Closing: 50% of the legal fees and costs incurred by the city for the CDBG loan closing

Occupancy Requirements
No vacant buildings considered. The applicant businesses must have been in operation at the location for a least one year.

CDBG Requirements
CDBG funds are provided to for-profit businesses to benefit a low- to moderate-income person, and/or to create one FTE job for each loan awarded. The 2014 HUD Income Guidelines can be accessed here.