Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 300 - Community Lender Loan Loss Account Program
Section 123-300-0700 - Loan Eligibility
Universal Citation: OR Admin Rules 123-300-0700
Current through Register Vol. 63, No. 9, September 1, 2024
(1) A lender may apply to the Department to enroll a Qualified Loan in the Program. The Department, at its sole discretion will determine whether a Loan is eligible and meets all the requirements for enrollment.
(2) A Qualified Loan does not mean a loan:
(a) With a variable interest rate;
(b) With an origination fee that exceeds
1.5%, and with an annual interest rate that exceeds the lesser of 18% or the
Prime Rate plus 7%;
(c) With an
origination fee that is equal to or exceeds 1.5%;
(d) With an annual interest rate that exceeds
the lesser of 18% or the Bank Short-Term Rate plus 7%;
(e) That results in more than $250,000 being
enrolled into the Program for any Business, or any affiliates or subsidiaries
of a Business;
(f) For working
capital with a term exceeding seven years;
(g) For working capital with an amortization
exceeding seven years;
(h) For
capital assets with a term exceeding the useful life of the assets;
(i) For capital assets with amortization
exceeding the useful life of the assets;
(j) For the purchase of real property that is
not used for the business operations of the Borrower;
(k) For the purchase of owner-occupied
residential housing;
(l) For the
construction, improvement or purchase of residential housing that is owned, or
to be owned, by the Principal or their immediate family members.
(m) For the purchase of securities;
(n) For the purpose of lobbying
activities;
(o) For the purpose of
repayment of delinquent federal, state, county or other local government taxes;
and,
(p) That includes, in whole or
part:
(A) The refinancing of an existing loan
made by the lender to the Borrower;
(B) The refinancing of an existing loan
enrolled in another state or federal credit enhancement or credit insurance
program;
(C) The refinancing of an
existing personal loan not used for business purposes;
(D) Reimbursement of funds owed to any owner,
including funds to repay any equity injection or injection of capital for the
business' continuance;
(3) The Principals of a Qualified Loan may not be:
(a) An executive officer, director, or
principal shareholder of the lender;
(b) A member of the immediate family of an
executive officer, director or principal shareholder of the lender;
(c) A person with a related interest to any
of the persons described in paragraphs (3)(a) or (3)(b) above; or,
(d) Delinquent on federal, state or local
taxes. A Business that has entered into, and is current on, a repayment
agreement with the applicable taxing authority is not considered to be
delinquent.
(4) The Business and the activities of the Business must be compliant with all federal, state or local laws.
Statutory/Other Authority: ORS 285A.075 & ORS 285B.780 - ORS 285B.799
Statutes/Other Implemented: ORS 285B.780 - ORS 285B.799
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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