In addition to the payments available under WAC 468-100-301 and 468-100-303, a small business, as defined in WAC 468-100-002(26), farm, or nonprofit organization is entitled to receive a payment for expenses actually incurred in relocating and reestablishing such small business, farm, or nonprofit organization at a replacement site.

1. (1) The payment is not to exceed, except as provided in (2) of this subsection:

   1. (a) $200,000; or
   2. (b) The amount established by the lead agency as adjusted in subsection (3) of this section, whichever is greater.

2. (2) Until August 1, 2030, if the displacing agency is a state agency, actual reasonable expenses necessary to reestablish a displaced small business, farm, or nonprofit organization at its new site, are not to exceed:

   1. (a) $100,000; or
   2. (b) The amount established by the lead agency as adjusted in subsection (3) of this section, whichever is greater.
3. (3) Beginning August 1, 2025, and annually on August 1st thereafter, the lead agency shall adjust the dollar amounts originally specified in subsections (1)(a) and (2)(a) of this section by two percent to account for inflation, as described herein. After the August 1, 2025, two percent adjustment, each subsequent year's calculation will reflect a two percent increase from the previous year. Each year the adjusted dollar amount shall be rounded up to the nearest whole dollar.

4. (4) Eligible expenses. Reestablishment expenses must be reasonable and necessary, as determined by the agency. They include, but are not limited to, the following:

   1. (a) Repairs or improvements to the replacement real property as required by federal, state or local law, code or ordinance.
   2. (b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.
   3. (c) Construction and installation costs for exterior signing to advertise the business.
   4. (d) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting.
   5. (e) Advertisement of replacement location.

   6. (f) Estimated increased costs of operation during the first two years at the replacement site for such items as:

      1. (i) Lease or rental charges;
      2. (ii) Personal or real property taxes;
      3. (iii) Insurance premiums; and
      4. (iv) Utility charges, excluding impact fees.
   7. (g) Other items that the agency considers essential to the reestablishment of the business.

5. (5) Ineligible expenses. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:

   1. (a) Purchase of capital assets, such as office furniture, filing cabinets, machinery, or trade fixtures.
   2. (b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation.
   3. (c) Interest on money borrowed to make the move or purchase the replacement property.
   4. (d) Payment to a part-time business in the home which does not contribute materially (defined in WAC 468-100-002(6)) to the household income.
   5. (e) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in subsection (4)(d) of this section.
   6. (f) Construction costs for a new building at the business replacement site, or costs to construct, reconstruct, or rehabilitate an existing building.

[Statutory Authority: RCW 8.26.085. WSR 26-11-009, s 468-100-306, filed 5/11/26, effective 6/11/26. Statutory Authority: Chapter 8.26 RCW. WSR 06-02-068, § 468-100-306, filed 1/3/06, effective 2/3/06; WSR 04-08-041, § 468-100-306, filed 3/31/04, effective 5/1/04. Statutory Authority: Chapter 8.26 RCW and WSR 89-17-048 (Order 121). WSR 01-02-027, § 468-100-306, filed 12/22/00, effective 1/22/01. Statutory Authority: Chapter 8.26 RCW. WSR 89-17-048 (Order 121), § 468-100-306, filed 8/14/89, effective 9/14/89.]