Craft3 in 2016 Annual Report

President’s Message

In 2016, Craft3 experienced a year of both success and sadness. We made deep investments in entrepreneurs of color and woman-, immigrant- and veteran-owned businesses. We celebrated new investors and partners. Our team grew stronger, and the organization remained financially healthy.

I am proud that Craft3 passed an important mark: We have invested $400 million in underserved communities since our founding. We also opened a new office in the Mid-Columbia Basin. And later this year, the board of directors will approve a new five-year plan that I look forward to sharing.

In June 2016, however, we lost founder, president and friend John Berdes to cancer. We also saw transition at the board, as long-time Chair Steve McConnell retired and Paul Benoit, former city manager of Astoria, took the helm.

For many years, John was our North Star at Craft3 — and I know that I have big shoes to fill. He believed, as I do, in the good that Craft3, our people and responsible capital can do for underserved communities. Making a difference in Oregon and Washington is a mission — his and ours — that we will never lose sight of.

We have been led to believe that these are challenging and divisive times for our country. But strengthening our economy, protecting our environment and providing capital to those without opportunity are universal values. In so many ways, capital can bring us together.

Thank you for being our partner in that work in 2016,

Adam Zimmerman, President & CEO

Remembering John Berdes

In June 2016, the Craft3 family lost our beloved founder and CEO John Berdes to lung cancer. For more than two decades, John inspired us — and the communities we work in — to be better, stronger and more resilient. He was determined, deeply thoughtful, a little irreverent and frequently brilliant. He will never be far from our minds and our hearts.

Our work continues in his memory though, and with every impact Craft3 makes, we will think fondly of our friend and all the good that he did during his time with us.

2016 Mission Results

Since 1994, we have been investing in communities across Oregon and Washington. We are pleased to share the scale of our impact during 2016. Take a look at this map of our work.

Investing in Underserved Communities

The story of Craft3 in 2016 can be told by our investments in the entrepreneurs of color and woman-, immigrant- and veteran-owned businesses that struggle to access the capital needed to build communities across Oregon and Washington. In fact, 64 percent of our commercial loans were made to these underserved populations during the year. There are many historic, policy and social reasons these populations remain underserved and unreached by affordable capital. It is for exactly those reasons that we prioritize investments in these entrepreneurs. We hope you’ll take a few minutes to be inspired by a few of our customers.

Veteran-Owned Business

Couple of Chefs Bruncheonette

Spokane, Washington

If you’re in downtown Spokane, you may see a big, blue food truck with a long line. That is where things all started for U.S. Army veteran Allen Skelton and his wife Joile Forral.

In 2011, they founded Couple of Chefs Catering & Food Truck. It was such a success that they wanted to expand to a full restaurant. But when they went looking for financing, they came up empty.

U.S. Army veteran Allen Skelton

Craft3 saw potential in Allen and Joile’s idea and made an investment. Soon after, Bruncheonette, their new casual-dining restaurant, opened. The Spokesman has since named it one of the best brunch spots in Spokane!

Entrepreneur of Color

Ideal Commercial Uniforms

Port Orchard, Washington

Every day at Ideal Commercial Uniforms in Port Orchard, Gloria Rosario turns sketches into masterpieces that she prints onto scrubs and industrial workwear.

But when she wanted to expand her products to include school uniforms, she wasn’t able to find a lender. Then she met our team. Craft3 sat down with her, combed through the financials and — to her surprise — laid out a path to loan approval.

“Chance leads to change. Change leads to challenge. We met Walter by chance. Craft3 led to change in our business, and now we are ready for the next challenge.”

Craft3’s loan gave Gloria the opportunity to be successful. And just like Gloria turns sketches into masterpieces, every day we use capital to make our region stronger by giving entrepreneurs opportunity.

Woman-Owned Business

Cascadia Vehicle Tents

Bend, Oregon

Even if you enjoy camping, you’re probably not fond of putting up a tent when the ground is uninviting. The solution? A special rooftop tent that attaches to the existing racks of your vehicle!

That’s why Jamie Rose and her husband Bobby started Cascadia Vehicle Tents in 2011. But as word got out and orders started piling up, Jamie needed a loan to maintain inventory.

Jamie Rose, owner of Cascadia Vehicle Tents

She didn’t have any luck finding financing, until she found Craft3. We liked what we saw and made an investment to help Cascadia Vehicle Tents purchase inventory and open a new retail location.

Immigrant-Owned Business

Full Circle Wreath Company

Cornelius, Oregon

When Valentin and Marina emigrated from Mexico in the late ’80s, the idea of owning a business never crossed their minds. But in 2016 an opportunity arose to purchase Full Circle Wreath Company.

Marina Morales Santos and Valentin Mora in the '90s

Then they crossed paths with us. As an untraditional lender, Craft3 can structure loans to match seasonal cash flows — which was perfect for Full Circle.

We invested, and now Valentin and Marina are preparing for their second season with new financial stability.

Clean Water Loan

Floridalma Torres

East Portland, Oregon

In East Portland, the home of Floridalma Torres and her family is nestled in the woods down a quiet gravel drive. It came as an unpleasant surprise one day when the plumbing started backing up into their house.

As they weighed options, their failed septic tank collapsed, creating a backyard sinkhole. Fixing the tank would cost $19,000, far beyond their household budget. Then they found Craft3.

“The biggest benefit of the Clean Water Loan is that it is affordable—the rate, payments and payback. We love that a portion of our loan also covers future maintenance costs.”

Floridalma is our first-ever Clean Water Loan client in Oregon. Construction kicked off quickly and was completed before the sinkhole damaged their home.

Our Funders

2016 Grantors and Investors

In 2016, Craft3 secured more than $60 million in funding commitments from over 50 grantors and investors. These resources came in the form of debt, capital grants and operating grants.

We are grateful to keep adding to our growing base of more than 120 financial supporters, which include banks and other financial institutions, foundations, government agencies, individuals and families, religious orders and other mission-aligned corporations.

Capitalization by Investor Type

“The work of Craft3 to provide safe capital and services to Native and under-resourced communities in the Northwest really helps deliver the kinds of outcomes we’ve both envisioned for the region,” Northwest Area Foundation Program Director Karla Miller.

Financial Results

2016 Audited Financial Summary

Consolidated Statement of Activities*

Consolidated Statement of Financial Position*

*The Consolidated Statement of Financial Position and Consolidated Statement of Activities presented were audited by Peterson Sullivan LLP. These have been derived from the complete financial statements and are available online at

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