Oregon Economic and Community Development Department
Our mission is to advance Oregon's economy. We look forward to paving the way for continued sustainable economic development in Oregon, and working with the Governor, private industry and other state agency partners to ensure opportunity for Oregonians today and beyond.
Gabe Silva, Small Business Services Officer503-986-0161 [email protected]://www.oregon4biz.com/smbiz.htm
Oregon Business Development Fund
www.oregon4biz.com/obdf.htm
Statewide revolving loan fund providing long-term, fixed-rate financing for:• Land• Buildings• Equipment• Term working capital
Oregon Business Development Fund
Job creation/retentionGap financingManufacturing, other traded-sector
businesses
Up to 40% total project cost, max. $700,000Private lender required, usually 10%
min. equity
Good and sufficient collateral
Credit Enhancement Fundwww.oregon4biz.com/cef.htm
Guarantee bank loans – Increase availability of capital to assist Oregon businesses in creating/retaining jobs
• Traded sector business focus - national, international markets
Distressed areas – all businesses eligible; administratively quick and easy
Bank sets rates and terms
Credit Enhancement Fund
Working capital lines of creditEvergreen Entrants
Initial working capital line Maximum $500,000 or 75% Fee: 1.25% of insured amount annually
Evergreen Plus Expand working capital line Maximum $500,000 or 90% of new increment Fee: 2.5% of insured amount annually
Credit Enhancement Fund
Term loansConventional Insurance
Up to 90% guarantee Maximum $700,000 Fee: 1.25% to 3% of insured amount depending on
term Secured predominately by fixed assets
First Loss Insurance
100% insurance on first 25% of loan amount Maximum $300,000 Fee: 2.5% to 6% of insured amount depending on term Secured predominately by fixed assets
Industrial Development Bond
www.oregon4biz.com/idrb.htm
- Provides low-cost financing for projectsIssue tax exempt bonds for
manufacturing (includes - software , biotech processes) and solid waste facilities (and some non-profits).
Key Federal IRS requirements for projects:
$10 million maximum bond amount
$20 million capital expenditures limit
Fixed assets only, generally new fixed assets
Capital Access Programwww.oregon4biz.com/cap.htm
Provides loan portfolio loss reserve to increase availability of bank loans to small businesses
Transaction between borrower/lender; bank assesses risk, sets loan terms
Borrower pays fee 3%-7% of loan; goes into loss reserve fund held at bank
Capital Access Program
OECDD matches fee; distressed areas and new banks receive double match
Reserve grows as lenders participate; drawn on to cover default losses
Quick turnaround 3–5 days
Term loan or line of credit
Virtually any type of business qualifies Exceptions: construction or purchase of residential
housing property not used for business operations , existing loan refinancing
Entrepreneurial Development Loan Fund
www.oregon4biz.com/edlf.htm
Micro-lending fund to support start-upsBorrower applies through Small Business
Development Center or certified entityBenefit to banking community - A funding
source you can refer customers to that are not yet bankable
Up to $25,000 initial loan; follow-on loans available
Rate: Fixed, prime plus 2.0%5 year maximum, equity of 20% of loan
amount needed.
Business Finance Staff
Gary Ross, Business Finance Officer 503–986–0167
David Weiss, Business Finance Officer 503–986–0170
Les Livengood, Business Finance Officer 503–986–0169
Terry Hegle, Business Finance Officer 503–986–0168
Laura Engstrom, Business Finance Officer 503–986–0174
Pamela Brunell, Administrative Assistant 503–986–0172
Business Retention Services fund
http://www.oregon4biz.com/brs.htm
Program providing consulting services to assist Oregon companies facing difficult changes.
Consultant is matched to a company based on specific needs and industry requirements
Interest-free loanSpecific eligibility criteria: emerging
industries/clusters with high potential for job creation/retention, traded sector, emergent technologies and distressed areas.
Government Contract Assistance Program
GCAP Bid Match – Daily computer matching of contract opportunities with your company including:
www.GedBizOpps.gov opportunities starting at $25,000 from federal agencies
Simplified acquisitions opportunities under $100,000 from several major buying agencies for products only
International bid opportunitiesState and local leads
Government Contract Assistance Program
Workshops, seminars and individual business training in:
Selling to the GovernmentBid preparationGSA MAS (Multiple Award Schedule)RFID (Radio Frequency Identification)Small Business Innovation Research (SBIR)
and Small Business Technology Transfer (STTR)
Government Contract Assistance Program
Support Services:Access to Federal Acquisition
Regulations and PolicyGovernment database registrationsGovernment certifications assistanceBid packets and proposalsProtest procedures and informationContract administration
Government Contract Assistance Program
Local GCAP Offices:Springfield: 541-736-1088 or 800-497-7551
North Bend: 541-756-5596Portland: 503-635-3921 or 800-803-7175
Service ProvidersSmall Business Development Centers -
Statewide www.BIZCENTER.ORG
Targeted Service Providers : OAME, ONABEN, OMEN, HMC, East County One-stop, Interface Network, Edev, Partnership to End Poverty, GCAP, Philippine American Chamber of Commerce, Shorebank Enterprise Cascadia.
http://www.oregon4biz.com/smbiz.htm
Recovery and Stimulus Program Information
Economic Stimulus and Recovery: "The Oregon Way“ http://www.oregon.gov/recovery/
To register and search a list of available opportunities with the state of Oregon, please visit the Oregon Procurement Information Network (ORPIN) http://orpin.oregon.gov/open.dll/welcome
Small Business Administration Program Plan http://www.recovery.gov/?q=content/program-plan&program_id=5437
Federal Government, Building the Recovery http://www.recovery.gov/
www.Grants.gov
Find Grant OpportunitiesGet RegisteredApply for GrantsTrack My ApplicationApplicant ResourcesSearch FAQs, User Guides and Site Information
www.govloans.gov/govlaons_en.portal
VETS Puts America’s Heroes to Work
Hurricane Preparedness: Are You Ready?
•All Loans •Agriculture •Business •Disaster Relief •Education •Housing •Veteran
For All U.S. Residents. FREE.Finding the right loan for you is easy at GovLoans.gov!
Gateway to government loan informationAgencies whose loan programs are represented on
this site:
U.S. Department of AgricultureU.S. Department of CommerceU.S. Department of EducationU.S. Department of Housing & Urban
DevelopmentU.S. Department of Veterans AffairsU.S. Small Business Administration
SBA - ARC Stabilization Loan Program Recovery Plan
The America’s Recovery Capital (ARC) loan program will:
offer up to $35,000 to help viable small businesses that need help in paying their existing loans to get through a short-term downturn.
free up capital for these small businesses, with the SBA fully subsidizing the interest payment.
100% Guarantee to lenderhttp://www.recovery.gov/?q=content/program-plan&program_id=5437
SBA Administrator Karen Mills Business Journal New, May 16, 2009
“ARC loans are for viable businesses that need some help today to pay interest and principal on an existing non-SBA loan.”
“After the six months of payment, this ARC loan does not have to be paid off at all for the next year, and then there’s usually five years after that to repay them.”
Question: What sort of response are you getting from lenders? “These are loans that help their loans, these are for non-SBA loans. It’s very good for them.”
SBA 7(a) Loan
For Small Businesses - Typically for new businesses, lack of earnings history, insufficient collateral, longer terms.
Applicant goes directly to bank, bank applies to SBA, bank closes and services loan, SBA pays guaranty if default.
Lender makes loan under SBA guidelines:Loans up to 150,000 – 85%Loans over 150,000 – 75%
SBA 7(a) Loan
SBA guidelines (continued):Max. guaranty is 1.5 millionMax. loan size is 2 millionRate is negotiated between borrowers and lender subject to SBA maximums (generally 2 ¼ over prime for loans less than 7 years and 2 ¾ over 7 years)
SBA 504 Loan Program
Suited for larger capital expansion projects, 50/40/10 structure is typical; designed to facilitate job creation.
1.5 MM for regular loans, 2.0 MM for public policy loans, 4.0 MM for small manufacturer loans.
Recovery Act changes include elimination of guarantee fees and increase of guarantee percent, waives processing and third party participation fees, etc.
SBA Portland District Contacts
Dennis Lloyd, Lead Lender Relations Specialist:
503-326-5205.
Russ Hooker , Lender Relations Specialist:
503-326-5200. E-mail: [email protected]
USDA - Farm Service Agency (FSA)
Provides loans, loan guarantees and business planning to eligible farmers, ranchers and others to support a thriving agricultural economy.
Up to 90% or 95% of Guarantee of:PrincipleAccrued InterestFSA Authorized Protective AdvancesAny Subsidy Payment Due (Interest
Assistance)
Types of FSA Guarantees
Annual Operating Loans (operating expenses, family living expenses, debt service payments)
Intermediate Term Operating Loans (capital purchases like machinery and equipment, debt restructuring and refinancing).
Farm Ownership Loans – Purchase or Improve Land or Restructure Debt
FSA Guaranteed Loan Limits, Interest Rates, Loan Terms
Operating Loans or Lines of Credit: $1,094,000Farm Ownership Loans: $1,094,000
Interest Rates must not exceed the rate charged to “average” agricultural loan customer.
Loan terms vary: 1 year (Annual Operating Loans), 3 to 5 years (Multi-year Lines of Credit), up to 7 years (Intermediate Term Loans) and up to 40 years (Real Estate Loans).
Farm Service Agency Contacts
Lynn Voigt, Farm Loan Chief, 503-692-1973 x256 [email protected]
Bob Perry, Farm Loan Specialist, 503-692-1973 x257 [email protected]
Peter Halvorson, Farm Loan Specialist, 503-692-1973 x 255. [email protected]
FSA Website: www.usda.fsa.gov
USDA Rural Development (RD)
An umbrella of federal agencies within USDA serving the needs of
rural AmericaHousing Programs – single & multi-
family housingCommunity Programs – community
facilities & infrastructureBusiness & Coop Programs –
business development
A few of RD’s guaranteed loan programs
1. Business & Industry (B&I) Guaranteed Loans
2. Rural Energy for America (REAP) Guaranteed Loans
3. Community Facilities (CF) Guaranteed Loans
Business & Industry (B&I) Guaranteed Loans
The B&I program is lender-driven. USDA guarantees the loan rather than lending directly.
A commercial lender requests the B&I guarantee, and, if approved, it makes (and services) the loan.
Federal guarantee for lenders on their rural business loans:
80% guarantee on loans up to $5 million70% guarantee on loans from $5-10 millionSize of loans: No minimum, but usually from $200,000up to $10 million.
B&I: Eligible Businesses
Retail ManufacturingWholesale ServiceHotels & motels NonprofitsNurseries Vertically-integrated Timber & forestry agri-businesses
(e.g. wineries)
and Commercial investment property
Retail centers, office buildings, industrial facilities, etc. - No owner-occupancy required.
B&I: Rates and Terms
Negotiated between lender & business
Interest rate: Fixed or variable (quarterly or longer)
Structure: Fully amortized; no balloonsWorking capital – up to 7 yearsEquipment – up to 15 years Real estate – up to 30 years
Prepayment penalty: – OK
Underwriting requirements
The business and its owners must have a good credit history.
The business must have tangible balance sheet equity position at loan closing/project completion: 10% or more (for existing businesses)
= Debt/Tangible Worth ratio of ≤ 9.0 20% or more (for new businesses)
= Debt/Tangible Worth ratio of ≤ 4.0
There must be adequate collateral (Real estate, Accounts receivable , Inventory ) and hazard and life insurance, etc.
Rural Energy for America (REAP) Guaranteed Program
70-85% guarantees on loans up to $25 MM
Loans to:Rural small businesses (SBA definition)Farmers & ranchers
Loans for up to 75% of the cost of:Installing renewable energy systemsInstalling energy eff. improvements
$20,000 Grants for renewable energy generating systems . Deadline is 7-31-09.
Community Facilities (CF) Guaranteed Program
90% guarantees on loans up to $25 million!(Communities of ≤ 20,000 population)
Loans to: Nonprofits Public bodies & Tribes
Loans for: Developing/improving community facilities e.g. hospitals & health clinics, community
centers, emergency vehicles, public schools, museums, etc.
USDA Rural DevelopmentOregon
Portland (State Office)* Pendleton*
Corvallis* Redmond*
Roseburg *
Jeff Deiss, Business & Cooperative Program Director – 503-414-3367
USDA Rural Development, Oregonwww.RuralOregon.biz
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