We're honored to serve as co-chairs of Craft3's Board of Directors. 2024 was a time of intentional internal work for Craft3. The organization focused on strengthening its leadership team, improving its systems, and cultivating a supportive organizational culture — all essential to the community impact work that defines our mission. At the same time, the Board has been leading the search for Craft3's next CEO, working to find the visionary and pragmatic leader we deserve.

Craft3's mission remains urgent. Across the Pacific Northwest, families and small businesses still struggle to access the capital they need to thrive. Our role is to ensure Craft3 is positioned to meet that need effectively for years to come.

Sincerely,

Sue Taoka and Lee Winslett

As I thought about how to introduce this year’s Annual Report, I found myself reconsidering Martin Luther King Jr.’s famous and much quoted line, “The arc of the moral universe is long, but it bends toward justice.” These words came at the end of the historic Selma to Montgomery march — a journey that began with the violence of "Bloody Sunday" and culminated in federal action to protect voting rights.

Dr. King's message was never about passive hope. It was about the power of collective action to create change. The moral arc bent toward justice because thousands of people chose courage over comfort, solidarity over safety, and persistent action over resignation.

For over 30 years, Craft3 has sought to bend the economic arc toward justice in rural, urban, and Indigenous communities across the Pacific Northwest. As explained more fully in our Strategic Plan, Craft3 is providing Capital where traditional markets fail, building Relationships that create lasting change, and amplifying the Voice of communities too often unheard in economic discussions. Together, these strategies are creating the foundation for a more thriving, just, and empowered region.

In 2024, we put this approach to work in powerful ways. We supported homeowners facing expensive septic repairs who had nowhere else to turn. We provided growth capital to small businesses that traditional banks wouldn't finance, helping entrepreneurs create jobs and serve their communities. We launched BuildUp Oregon, bringing together four Community Development Financial Institutions to support child care providers through facility improvements that directly benefit working families. And we continued strengthening the internal workings of our organization.

We find ourselves, however, in a moment when the future feels perilous and uncertain at best. But while I am worried, in the longer term, I am optimistic. This is partially pragmatic. Optimism without action can be delusional. But if we’re optimistic that a better future is possible, and we then use this belief to guide our actions, we can create collective change. As James Baldwin said, “Not everything that is faced can be changed, but nothing can be changed until it is faced.”

This is where you come in. I would like to make a special request for your help in facing this future and choosing community over chaos for people across the Pacific Northwest. If you are able to deepen your support and involvement, please consider doing so. That could mean making a donation, investing in Craft3, referring a business or nonprofit that is seeking capital, or helping us connect with more people like you across the region. If you know someone you think would be interested in our work, please forward this annual report to them so they can learn more about Craft3. It only takes a minute.

Neither the economic nor the larger moral arc bend toward justice on their own. They bend because people like you choose to push.

Will you join us?

With gratitude and unwavering commitment,

Bruce Brooks, President and Interim Chief Executive Officer

CONTENTS

1. Lending Summary
2. Building a Better Future
3. Safeguarding Homeowners
4. Flexible Financing for Small Businesses
5. Fortifying our Future
6. 2024 Financial Results

Lending Summary

During 2024, Craft3 originated 886 loans totaling $54.1 million.

Expanding Access to Capital

Craft3 focuses on expanding access to capital. Too many entrepreneurs, organizations, and homeowners find themselves unable to access the credit they need to launch a promising business, realize an excellent idea, or make an essential septic or energy upgrade.

In 2024, Craft3 made $19.4 million in loans to homeowners. Here’s where those dollars went:

Target Investment Areas

Craft3 invests in four key areas with the goal of creating wealth in the communities we serve. In 2024, we made 80 commercial loans. Our commercial lending flowed into our strategic investment areas as shown below. 13 of those loans fell into more than one investment area.

Building a Better Future

High quality child care is one of the most fundamental and scarce essential community services. Every county in Oregon but one is a child care desert, meaning for every three children needing care, there's only one slot available. The economics are brutal for families and providers alike, with most providers operating on razor-thin margins that leave little capacity to take on debt for expansion or improvements.

Craft3 partnered with three other CDFIs—Micro Enterprise Services of Oregon (MESO), Low Income Investment Fund (LIIF), and the Network for Oregon Affordable Housing (NOAH)—to launch BuildUp Oregon in 2024. This collaborative is dedicated to increasing access to child care through grants, loans, and technical assistance to providers and affordable housing developers looking to open or expand child care businesses to meet community need. Rachel Langford, Early Care and Education Program Manager for Craft3 explains: “Given how deeply undervalued and chronically under-resourced the child care sector is, it’s gratifying to address that scarcity in a very concrete way with the funding and supportive guidance child care entrepreneurs need and deserve. The impact of this work is exponential and generational and I love that – these investments are powerful catalysts for the learning and growth of young children and the stability of families and our workforce.”

BuildUp Oregon administers two funds.

PFA Facilities Fund: Supporting Universal Pre-K

The PFA Facilities Fund launched in spring 2024 as part of Preschool for All, exclusively serving providers participating in the PFA program. This targeted approach ensures these projects directly support Multnomah County's goal of reaching universal pre-K by 2030.

Since launch, BuildUp Oregon has awarded $12.5 million in grants and $3.9 million in loans through Craft3—a total of $23.2 million that has funded 51 early care and education programs and created 903 seats, with 823 specifically intended for PFA. This funding doesn't just help providers expand, improve, or preserve their programs—it serves working families who desperately need accessible child care. Like most of Oregon, Multnomah County is experiencing a severe child care shortage. Learn more.

OHCS Co-Location Fund: Housing and Child Care Together

Oregon Housing and Community Services committed $7.4 million to nine innovative projects across seven counties that co-locate early care and education with affordable housing developments. This first-of-its-kind funding approach addresses two of Oregon's most pressing needs simultaneously while leveraging an additional $20 million in public and private investment.

Projects with funding commitments

These nine projects will create or preserve 542 child care seats statewide in beautiful, intentional spaces designed to support children during the most critical stages of their development. By bringing early learning and care directly into affordable housing communities, this approach maximizes public investment while reimagining how we build thriving communities where families can live, work, and access quality care all in one place.

It Takes a Village

Childcare providers frequently encounter difficulties related to the many aspects of their jobs not directly related to caring for children. For example, opening a new center or a major renovation project can be full of pitfalls.

Dana Hepper, Director of Policy & Advocacy at the Children’s Institute offers this context: “All kinds of businesses face regulatory barriers in establishing their sites. A big difference here is that other businesses have money. Child care does not. So, one big piece is giving child care businesses the same kind of capital to allow them to navigate those regulations.” To do this, BuildUp Oregon provides grant funding and loans, if needed, as well as helps child care providers secure permits and certifications, and manage complex construction or renovation projects.

When Martha Thomas faced overwhelming regulatory hurdles and a $23,000 construction setback while opening her second child care center, TCA Creative Minds turned to BuildUp Oregon for support. Facilities Advisor Juan Muros worked closely with Thomas, guiding her through the complex permitting process and coordinating funding applications while she managed contractors and navigated city requirements. The collaborative effort between Thomas, BuildUp Oregon, contractors, and city officials culminated in the center's opening in November 2024, with families, community members, and officials celebrating together at a ribbon-cutting ceremony. Through this partnership, the community gained 10 additional childcare seats and a completed playground, demonstrating how collective determination and coordinated support can overcome significant challenges to serve children and families.

Safeguarding Homeowners

Across Oregon and Washington, more than 1.4 million homes rely on septic systems—time-tested technologies that are highly effective when properly maintained and functioning within their expected lifespan. However, when these systems fail, the consequences extend far beyond individual properties, creating serious public health risks and environmental hazards that affect entire communities.

For homeowners, septic system failures often arrive as urgent, unexpected emergencies requiring costly repairs that can threaten their ability to remain in their homes. This challenge is particularly significant because for most homeowners, their residence represents not only their most valuable asset and primary wealth-building tool, but also their source of comfort, safety, and connection to community.

Recognizing these interconnected impacts, Craft3's Clean Water Loan program, in partnership with Washington's Department of Ecology and Oregon's Department of Environmental Quality, provides affordable and accessible septic financing to help families make critical repairs and stay in their homes.

In 2024, we made 439 Clean Water Loans totaling $11.9 million and 96 grants totaling $2.5 million.

Meeting Customers Where They Are

Clean Water Loan customers often reach out to Craft3 during some of their most vulnerable moments. When a septic system fails, families may suddenly find themselves unable to use basic plumbing in their homes, creating an urgent crisis that can feel overwhelming—especially for those with limited financial resources. Our lenders understand that this work requires more than traditional lending expertise; it's often like social work, supporting people through traumatic experiences while providing a steady, calming presence. Lenders guide customers through each step of the process with patience and care by helping them navigate the immediate crisis and discover a path toward a solution.

Many of our customers are also unfamiliar with financing options, making financial literacy education crucial. Our lenders are passionate about empowering customers by clearly explaining loan terms, breaking down financial terminology, and ensuring everyone fully understands their financing before moving forward.

The impact of this comprehensive approach is evident for customers like Cara Tapken, who was rebuilding after losing her home in the 2020 Santiam wildfires: "Craft3 saved me stress and frustration, and probably a level of anger and despair going into winter." Similarly, Philip Aievoli, a senior homeowner on a fixed income who learned about Craft3 through a neighbor's contractor, reflected: "I couldn't have asked for better service. It was just wonderful."

Serving More Homeowners in Need

In 2024, we focused on ensuring that we can serve more homeowners in need. One way we did this was by offering Clean Water grants to lower income customers in both states. These grants are designed for customers who would not be able to afford repaying a loan for the entire cost of their project. Depending on the level of need, grants can cover some or all of the project costs. One thankful grant recipient had this to say: “I could never have done this on my own. I didn't know what I was going to do. If I had to get a loan, I'd be paying it off my whole life. Thank you so much."

We also refined our product to better target and serve customers with greater needs. Our interest rates are now based not on flat income bands, but on area median income (AMI), which varies by city or county. We offer lower interest rates for lower AMI borrowers. Grant funds, when available, are reserved for borrowers at and under 50% AMI. We are actively seeking to grow the availability of grant funding so we can serve more low-income homeowners.

You can help strengthen and grow our Clean Water Loan program by investing in Craft3.

Flexible Financing for Small Businesses

Behind every small business loan we make is the story of an entrepreneur with vision, determination, and a deep commitment to community. These individual stories, each unique, combine to form a larger story of regional economic growth, community development, and inclusive opportunity.

Small businesses are a vital engine of the U.S. economy. They account for nearly half of all private-sector jobs and make up 99.9% of all U.S. firms. Since late 2019, small businesses have generated 71% of net new private-sector jobs (Small business in America: Time to think big | McKinsey). But their importance is not just in numbers—they help shape the identity, resilience, and vibrancy of the communities we serve.

Too many small businesses face persistent barriers to productivity and growth. The same McKinsey report cited above, “America’s small businesses: Time to think big,” notes that US small businesses are only 47% as productive as large firms, compared to 60% in peer economies. Compared to larger firms, small businesses adopt technology at lower rates, have fewer resources to invest in training and talent, and often struggle to access the capital they need to expand and compete. These challenges are even more acute for entrepreneurs of color, who typically have less wealth, limited access to friends-and-family funding, and less collateral to support conventional financing.

That’s where our commercial lending comes in. We work to expand access to capital by meeting borrowers where they are. We offer flexible underwriting with lower equity contributions, less stringent credit score requirements, and hands-on support to empower and inform our customers.

By helping businesses access the capital they need to thrive, we’re not just supporting individual entrepreneurs—we’re investing in stronger, more resilient communities.

Demystifying the Application Process

Many business owners — particularly those from communities where financial institutions haven't always been trustworthy or accessible—approach borrowing with anxiety and misconceptions. The Definitive Guide to Getting Loan Ready is a web resource and downloadable PDF that demystifies the business lending process. It breaks down complex topics into manageable steps, explains specialized terminology in plain language, presents multiple perspectives, and allow readers to choose their own path through the material based on their unique circumstances and comfort level.

These resources reflect our commitment to education over sales pressure. Rather than pushing products, we focus on empowering business owners with knowledge and connecting them to diverse resources that can help them make informed decisions about their financing journey. By addressing the real emotions and barriers that entrepreneurs face—from fear and suspicion to simple lack of familiarity with lending processes—we're working to build trust and create more equitable access to the capital that helps businesses grow and communities thrive.

Building Community Through Play

When banks turned down Junebug Play and Learning Space’s loan application for an indoor play center due to lack of industry experience and collateral, Craft3 took a deeper look at the opportunity. We recognized that Justina’s project management expertise, strong personal finances, and clear vision for meeting a crucial community need made her business a perfect fit for our mission. Our $250,000 construction loan helped create a new community institution that will serve Ridgefield, Washington’s growing population while supporting a small minority and woman-owned business.

Mission-Driven Lending Makes the Difference

When HomeWork Development approached Craft3 about their 15-unit affordable housing project in Milwaukie, they had already heard "no" from twelve different banks. Craft3's mission-driven approach allowed us to see past the complexities that deterred traditional lenders. Our team worked creatively to structure a $3.6 million construction loan that accommodated multiple funding sources and an innovative repayment approach. This shows how community development financial institutions can break through barriers to create lasting impact.

From Projections to Possibilities

When Miriam Sangabriel wanted to expand her family's successful food truck into a brick-and-mortar restaurant, she had passion, culinary expertise, and family commitment—but lacked the financial projections needed for traditional financing. Working with a Craft3 Business Services coach in both Spanish and English, Miriam learned to create comprehensive financial projections that demonstrated her expansion plans' viability. This new skill empowered her to secure the loan and grow as an entrepreneur.

Today, Kopitos Cocina thrives as a vibrant downtown Newberg restaurant serving traditional Mexican cuisine while maintaining their successful catering business. "Having a business takes effort, perseverance and dedication," says Miriam. "As first-generation immigrants it means sacrifices and hard work... For us having a business means challenges and growth."

Fortifying our Future

After three decades of growth, from a small loan fund at the mouth of the Columbia River to serving all of Oregon and Washington, Craft3 continues to evolve both in how we fulfill our mission and how we organize ourselves internally. Change isn't just natural — it's necessary. As we've grown larger and become a predominantly remote organization, we've had to adapt how we work together and make decisions.

In 2024, we expanded and strengthened our leadership team while focusing on organizational development to makes us more sustainable and effective as a larger organization. We launched a new Leadership Committee to create a more distributed leadership model, streamline decision-making, increase transparency, and push more decisions down to staff level — empowering our team members closest to the work.

At the same time, we've been thoughtful about how to keep staff connected and engaged in a largely virtual work setting, exploring new ways to think about place and community when we're not all in the same building. The investments we've made in our people and processes this year position us to thrive as we continue growing our impact.

LEADERSHIP COMMITTEE

• Bruce Brooks, President and Interim CEO
• Gregory Bradley, Chief Credit Officer
• Kelly Dulong, Chief People Officer
• Aman Jeloka, Chief Financial Officer
• Brooke Kingery, Lending Services Director
• Chris Larson, Chief Strategy & Information Officer
• Carl Seip, Chief Marketing Officer
• Turner Waskom, Chief Lending Officer
• Maggie Kirby Weiland, Chief Development Officer & Chief of Staff

First-Ever Chief People Officer Focuses on Culture and Growth

We recognize the need for dedicated leadership around our most important asset — our people. That's why we created our first Chief People Officer role and brought Kelly DuLong on board in late 2024.

Kelly's track record speaks for itself: she spent nearly a decade transforming workplace culture at a major Pacific Northwest nonprofit, where her leadership helped the organization earn multiple "best places to work" awards. Her approach combines strategic HR infrastructure with genuine culture-building, and she's particularly skilled at creating environments where diverse teams thrive together.

A Division I fastpitch softball relief pitcher at the University of Notre Dame, Kelly knows how to step in and deliver under pressure while cultivating team culture that respects and maximizes everyone's talents. Read more.

New CFO Brings Strategic Financial Expertise

In late 2024 we began recruitment for a new Chief Financial Officer. This work culminated in March 2025, when we welcomed Aman Jeloka as our top financial strategist. With 32 years of financial leadership at organizations like BECU, Amazon, JPMorgan Chase, and Capital One, Aman brings the strategic expertise we need to strengthen our financial planning, modeling, and reporting capabilities.

Aman oversees finance, accounting, compliance, and treasury functions while supporting our work with over 150 funders and 200 different funding sources. He's also focused on optimizing the financial performance of our products and services, evaluating key metrics that support our strategic goals, and maintaining the crucial balance between mission fulfillment and financial sustainability. Read more.

Capitalization by Funder Type

Thanks!

Thank you to our customers, partners, funders, and supporters who made this year possible. Your trust and collaboration mean everything to us and help us create real impact in our communities. We couldn't do this work alone, and we're grateful to have you with us.