Current through Register Vol. 63, No. 9, September 1, 2024
(1) The
Director (for loan requests of $250,000 or less) or the Finance Committee may
approve a loan request if it finds that:
(a)
Fund participation in any financing shall not exceed 40 percent of the total
amount of the eligible project costs, except that Fund financing may be up to
50 percent when an application is submitted through a Financial institution or
Fund financing may exceed 40 percent when two or more Financial Institutions
have denied financing as outlined in OAR
123-017-0015(10).
(b) The proposed business development project
is feasible and a reasonable risk from practical and economic standpoints, and
the loan has reasonable prospect of repayment.
(c) The applicant can provide good and
sufficient collateral for the loan, as determined by the Commission. The
Commission's security interest may be subordinated to the security interest of
other lenders participating in the project. The security interest of loans from
the Oregon Targeted Development Account will not be subordinated to the
security interest of other lenders, unless the Finance Committee or the
Director finds there is an abundance of collateral and/or company or guarantor
financial strength. The Business Development Commission may make loans in
distressed areas, as defined by the Department, without regard to the
requirements for security and collateral under ORS
285B.059 and
285B.062 that are otherwise
applicable. Collateral value of out-of-state real property will be
significantly discounted from nominal assessed or appraised value.
(d) Monies in the Oregon Business Development
Fund are or will be available for the proposed business development
project.
(e) There is a need for
the proposed business development project.
(f) The applicant's financial resources are
adequate to ensure success of the project.
(g) The applicant has not received or entered
into a contract or contracts exceeding $2,000,000 with the Commission, under
authority of ORS 285B.050-285B.098, for the previous 365
days.
(2) The Finance
Committee may, in its sole discretion, permit the assumption of an outstanding
Oregon Business Development Fund Loan, if the assuming obligor satisfies the
Finance Committee or the Director as to its willingness and ability to perform
all obligations of the original borrower related to the loan, including but not
limited to the obligation to repay the loan in accordance with its terms, and
if the State's collateral position is not diminished. Oregon Business
Development Fund loans are not, however, necessarily or automatically
assumable. A complete application, application fee and supporting documentation
are required to initiate review of the request.
(3) The applicant and applicant's project
are, and will remain, compliant with all local, state and federal laws and
regulations.
