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        of our new brand  List of Registrated Participants |
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Incentives :: State IncentivesOregon IncentivesThe State of Oregon offers a variety of incentive and finance programs for businesses. Each program has unique requirements and many focus on specific industry groups. Oregon Business Development FundThe Oregon Business Development Fund (OBDF) is a revolving loan fund administered by the Oregon Economic Development Department . Manufacturing, processing and tourism-related businesses are eligible. The OBDF provides long-term, fixed rate financing for land, buildings, machinery and equipment, and permanent working capital. The fund gives preference to projects that create at least one job per every $15,000 of OBDF investment. Broad program guidelines include:
For more information contact
Oregon Economic Development Department
Oregon Capital Access Program (CAP)CAP utilizes State matching funds to create a loan loss reserve fund. This fund provides additional capital to small businesses and encourages banks to make higher risk loans. In the event of a default, the reserve may be used to fund loan losses. A CAP loan may be used for virtually any purpose with three exceptions:
It is also required that the resulting economic benefits occur primarily in Oregon. For more information about the CAP program contact
Oregon Economic Development Department
Oregon Commercial Mortgage ProgramThe Oregon State Treasury has a commercial mortgage program to provide financing for large real-estate development projects. Under this program, commercial lending institutions can sell large real-estate mortgages to the Oregon State Treasury. This enables commercial lenders to provide financing for large projects that they might not otherwise be able to fund. Each month the state treasury established a commercial mortgage yield requirement. This yield represents the rate with which the Public Employees Retirement Fund will buy mortgages. The yield is usually 250 to 300 basis points over current U.S. Treasury yields. The point spread corresponds to U.S. Treasury maturity. The State Treasury's most commonly used program is a ten-year fixed-rate loan with a twenty-five year amortization. The State Treasury will entertain shorter term loans on a case-by-case basis. For a list of requirements and further information, contact a local bank or the Oregon State Treasury at (503) 378-4111. Oregon Community Development Block Grant ProgramOCDBG grants are used for the benefit of businesses that will create or retain permanent jobs, the majority of which will be made available to low and moderate income workers. The money can be used for either a loan from the city or county to a business or to pay for construction of public infrastructure needed to support a business. For business projects, at least one job must be created or retained for every $12,000 in grant funds. For public infrastructure projects, the ratio is one job per $20,000. The maximum grant award is $5000,000 per project. Grant recipients are required to comply with various federal requirements such as Davis-Bacon prevailing wages and environmental review as they apply. For more information contact
Oregon Economic Development Department
Oregon Industrial Development Revenue Bond Program (IDRB)The IDRB program is designed to create jobs. It issues bonds for manufacturing, processing and tourism facilities in Oregon. The key feature of the IDRB is the tax-exempt status, which lowers the cost of capital. If a project qualifies, interest paid is exempt from federal personal income tax and in some cases, state personal income tax. Tax exempt rates are typically 75 to 80 percent of conventional rates. Revenue bonds are not direct obligations of the State of Oregon. The individual or corporation on whose behalf bonds are issued is legally obligated to repay them. The State has no obligation to repay the holders of revenue bonds and does not in any way guarantee the bonds. An eligible company may borrow $500,000 to $10 million through this bond program. Bond proceeds may be spent for fixed assets and some costs of issuance. Not more than 25 percent of bond proceeds can be used to acquire land. Acquisition of existing facilities is allowed if certain amounts are spent for rehabilitation. Bond proceeds cannot be used to refinance existing debt. For more information contact
Oregon Economic Development Department
Oregon Composite Revenue Bond ProgramThe Composite Revenue Bond Program combines several individual Industrial Development Revenue Bonds (IRDB) projects into one bond issue. The "composite" issue will be large enough to achieve an average issuance cost lower than individual borrowers could obtain. Each individual loan is secured by a letter of credit from the borrowers bank. Tax exempt rates are typically 75 to 80 percent of conventional rates. The state does not subsidize the interest rate or guarantee the borrower's repayment. Each participant stands alone in terms of repayment and default. Each borrower's loan terms can vary within the composite issue. The originating bank, the underwriter and the state will tailor the loan term to the borrower's need and to the life of the assets financed. Oregon Entrepreneurial Loan FundVery small businesses are the backbone of Oregon's economy. The Oregon Entrepreneurial Loan Fund, financed by the Oregon Lottery Video Poker Program, was created to support those small start-up companies. To qualify for this type of financing, applicants must be enrolled in a Business Development Center (BDC) Business Management Program. They must have a finished business plan reviewed by a BDC or another certified entity. Finally, they must employ dislocated timber workers, be located in a severely affected community or be a severely disabled person. Applicants must provide a minimum of 20% equity in the form or cash, property or business equity and the borrower must provide collateral. The maximum term for a loan is five years. Oregon Industrial Technical ServiceThis service provides technical assistance to companies in basic manufacturing and processing industries, with preference given to firms in forestry, fishing and agriculture. The goal is to help managers and owners solve problems before they result in closures of major layoffs. Professional consultants analyze a company and make specific recommendations for a turn-around plan. Consultant's fees are initially paid by the Oregon Economic Development Department, but the company is obligated to repay the cost of the service within two years. Funds for the service are generated by the Oregon Lottery. Oregon Special Public Works Fund ProgramThe Special Public Works Fund (SPW), fueled by Oregon Lottery proceeds, is available to cities, counties and domestic water supply and sewer districts. Grant and loan assistance, up to $500,000, can be secured for infrastructure facilities essential for economic development and permanent job creation or retention. Eligible improvements include work such as road, public transportation, sewage facilities, solid waste disposal sites and water supply works. Each infrastructure project must support businesses wishing to locate, expand or remain in Oregon. For ever $20,000 of SPW assistance, the project must create or retain at least one permanent, full-time equivalent job. Technical assistance grants, up to $10,000, are available for municipalities with populations less than 5,000. These monies can be used for preliminary planning and specifications related to eligible infrastructure projects. Oregon Small Scale Energy Loan ProgramThe Small Scale Energy Loan Program (SELP) finances energy conservation and renewable energy projects in Oregon. SELP loans can finance eligible equipment costs, construction, certain design and consultant fees, some reserves, construction interest and most loan closing costs. Loan rates are set when bonds are sold and interest rates are typically lower than market. Many loans have 15 to 20-year terms. All Oregonians and Oregon organizations can apply for loans. Eligible projects are those which conserve conventional energy, such as electricity and natural gas, and projects which produce renewable energy from water, wind, the earth's heat, the sun, biomass, some waste materials or waste heat. Regional Programs. For additional information contact MCEDD Loan Officer
Small Business Administration 504 Loan ProgramThe SBA 504 Loan Program provides long-term fixed-asset financing to small business concerns. Funds may be used for plant acquisition, construction, renovation or expansion, including the acquisition of land. Proceeds may also be used for the acquisition of machinery and equipment having a useful life of at least 10 years. Up to 40 percent, or a maximum of $750,000 of project financing, can be obtained under this program (special circumstances may allow a $1,000,000 debenture). A 504 financial package is a combination of at least three sources: The Small Business Administration, a private sector financier ( usually a bank) and an equity contribution of at least 10 percent from the small business concern. Machinery and equipment terms are 10 years and real estate terms are 20 years. Interest rates are based on current market rates for 5 and 10 year U.S. Treasury issues, plus a spread over the treasury rate based on market conditions. SBA 504 loans are primarily available to keep successful small businesses planning to expand. A business qualifies as "small" if its net worth does not exceed $6 million and its average net income after taxes for the preceding two years does not exceed $2 million. Mid-Columbia Economic Development District (MCEDD) staff is available for assistance in packaging applications for financing. The approval process takes approximately 90 days after the package is submitted. Revolving Loan FundThe Mid-Columbia Economic Development District (MCEDD) has operated a Revolving Loan Fund (RLF) Program since 1980. To date, MCEDD's RLF Program has made loans totaling $2,071,948 to new and expanding companies throughout the Columbia Gorge Region. In general, loan amounts range from $10,000-$75,000 and are for terms of 5 to 20 years. Eligible applicants are for profit firms conducting business in the manufacturing, value-added processing, service or retail sectors. RLF monies are used to leverage private and commercial lender dollars, encouraging other lenders to participate in a project. For more information contact
MCEDD
Wasco County Enterprise Zone ProgramThe Dalles Enterprise Zone was created to encourage business investment and create new jobs in The Dalles urban area. Qualified firms may obtain a three to five year, 100% property tax exemption for all land and building improvements including some machinery. Nineteen different permit fees may also be waived. To be eligible for an Enterprise Zone property tax exemption and the reduction in permit fees, a business must receive at least 75 percent of its revenue by providing goods, products or services to other businesses through activities such as manufacturing, assembly, fabrication processing, shipping or storage. The firm must make an investment in qualified property not already on the county tax rolls. If the firm is a new business, the firm must hire one or more employees to work within the Enterprise Zone after re-certification and before March 1st, following the calendar year in which the investment in the qualified property was completed. The property must be owned or leased by the firm. Expansion of an existing business must increase employment at least 10 percent before March 1 of the year the exemption is initially applied for compared with the previous year; only full-time, year-round employees are counted. An existing firm that makes an investment of $25 million or more may qualify with less than a 10 percent expansion in employment. The firm must sigh a first-source hiring agreement prior to employee hiring. The agreement requires the firm to consider qualified applicants referred by the State Employment Division. For additional information contact Dan Durow
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