Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 19 - OPERATION OF OREGON ENTREPRENEURIAL DEVELOPMENT LOAN FUND
Section 123-019-0020 - Eligibility

Universal Citation: OR Admin Rules 123-019-0020

Current through Register Vol. 63, No. 9, September 1, 2024

The intent of the Entrepreneurial Development Loan Fund is to provide direct loans to help start-ups, micro-enterprises and small businesses expand, become established, and/or retain operations in Oregon. The Fund is intended to fill niches not provided by banks or credit unions through traditional lending programs. Loans made from the Fund are intended to bridge early-stage funding gaps that exist due to lack of operating history, limited availability of business and personal assets necessary to adequately secure the loan, limited liquidity, sub-standard credit quality and other credit risks. To the extent possible, Certified Entities will assist Applicants in developing application materials necessary to qualify for financing and the Department will structure loans to prepare Applicants to qualify for loans from traditional lenders. This Fund is intended to compliment, not compete with, private capital.

(1) To be eligible for a loan from the Fund, each Applicant must meet one or more of the criteria in this section:

(a) The Applicant must have had total revenues of $1,500,000 or less in the 12 calendar months immediately preceding the date application is made to the Fund for a loan;

(b) The Applicant must have 25 or fewer full-time equivalent employees at the time of application; or,

(c) At least 50 percent of the Applicant's business or proposed business must be owned by an individual or individuals classified as Severely Disabled.

(2) The Applicant may not be effectively owned or controlled by another business entity or other person, or own or control another business entity that, either by itself or when combined with the Applicant, is not eligible for a loan under this rule. Ownership of 50 percent or more of the Applicant would constitute, or a subsidiary which sells a majority of its goods or services to the parent may constitute, effective ownership or control. The Finance Manager may, however, make this determination based on the facts of an individual case.

(3) The Principal of the Applicant must be active in the day-to-day operations of the business, otherwise the business is considered to be a passive investment and is not eligible for a loan from this Fund.

Statutory/Other Authority: ORS 285A.075 & OL 2020 2nd SS Ch 10 Sec 26 and 27

Statutes/Other Implemented: OL 2020 2nd SS Ch 10 Sec 26 and 27, ORS 285 B 740, ORS 285 B 743, ORS 285 B 746, ORS 285 B 749 & ORS 285 B 758

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