Current through Register Vol. 63, No. 9, September 1, 2024
(1) After approval
of an application for a program grant or loan for a Project, the Department in
coordination with the Governor shall promptly:
(a) Provide official documentation of the
program grant or loan for the business to present as evidence of a covered
incentive, which may include a notice of intent to award letter, conditional
award letter or a binding commitment letter; and
(b) Begin preparation of an agreement with
the business.
(2)
Agreements for program loans:
(a) May be made
for a term not to exceed 10 years;
(b) Shall be made at a zero rate of interest,
unless a penalty is imposed under Section 5(3), chapter 25, Oregon Laws
2023;
(c) Shall require that for
every $1 million in program loan proceeds received, the recipient business
must, over the period of the loan agreement, generate at least:
(A) If the term of the agreement is not more
than five years, $1.25 million in state and local revenue; or
(B) If the term of the agreement is more than
five years, $1.5 million in state and local revenue.
(d) In lieu of the requirement under section
(2)(c) of this rule, shall require that a recipient business instead commit to
the creation of new jobs in Oregon:
(A) For
every $45,000 in program loan proceeds received, the recipient business must
commit to generate at least one new job;
(B) At least 65 percent of the required new
jobs must be permanent, full-time positions (to constitute permanent positions,
such jobs must be retained by the recipient business for the requisite term of
years provided for in the loan agreement, starting no sooner than the effective
date of Enrolled Senate Bill 4, i.e. April 13, 2023); and
(C) That pay on average at least the average
median income for the region of this state in which the services will be
performed.
(e) Shall
provide terms for loan proceeds disbursements, which may be in a single payment
or in multiple, conditional payments.
(f) Shall provide terms for loan
repayment.
(g) Shall contain terms
imposing liability for immediate repayment, including but not limited to those
provided in Section 5, chapter 25, Oregon Laws 2023.
(h) Shall provide prevailing rate of wage
requirements.
(i) Shall contain
such other terms and conditions as the Department requires.
(3) Agreements for program grants:
(a) May be made for a term not to exceed 10
years;
(b) Shall provide terms for
repayment of the grant if the obligations in sections (3)(c) or (3)(d) of this
rule, as applicable, are not met during the period of the grant agreement.
Repayment terms may include full repayment and partial repayment obligations,
including repayment obligations that are prorated. If a repayment is required
at the termination of the agreement, no interest shall be imposed on the grant
proceeds; however, a penalty may be imposed under Section 5(3), chapter 25,
Oregon Laws 2023.
(c) Shall require
that for every $1 million in program grant proceeds received, the recipient
business must, over the period of the grant agreement, generate at least:
(A) If the term of the agreement is not more
than five years, $1.25 million in state and local revenue; or
(B) If the term of the agreement is more than
five years, $1.5 million in state and local revenue.
(d) In lieu of the requirement under
paragraph (3)(c), shall require that a recipient business instead commit to the
creation of new jobs in Oregon:
(A) For every
$45,000 in program grant proceeds received, the recipient business must commit
to generate at least one new job;
(B) At least 65 percent of the required new
jobs must be permanent, full-time positions (to constitute permanent positions,
such jobs must be retained by the recipient business for the requisite term of
years provided for in the grant agreement, starting no sooner than the
effective date of Enrolled Senate Bill 4, i.e. April 13, 2023); and
(C) That pay on average at least the average
median income for the region of this state in which the services will be
performed.
(e) Shall
provide terms for grant proceeds disbursements, which may be in a single
payment or in multiple, conditional payments.
(f) Shall contain terms imposing liability
for immediate repayment, including but not limited to those provided in Section
5, chapter 25, Oregon Laws 2023.
(g) Shall provide prevailing rate of wage
requirements.
(h) Shall contain
such other terms and conditions as the Department requires.
(4) If a Business changes
ownership or substantially reorganizes while its agreement is in effect:
(a) The Department in consultation with the
Governor may execute an amended and restated agreement or a new agreement with
the business pursuant to section 3(4), chapter 25, Oregon Laws 2023 that
commits the business to continue the approved project.
(b) The business remains liable for the terms
of the original agreement, including remaining subject to section 5, chapter
25, Oregon Laws 2023 if an amended and restated or new agreement is not
executed.
(c) In the amended and
restated or new agreement, the department may agree to minor changes in the
terms of the original agreement that the department and the Governor considers
reasonable in the circumstances and faithful to the purpose for which the
business's application was approved.
(5) Program grant or loan proceeds from the
Fund may be used to pay only project costs in accordance with section 1(3)(a),
chapter 25, Oregon Laws 2022, and as authorized by the Department at its sole
discretion under the terms of a loan or grant agreement. The Department may
require a project budget of authorized costs be incorporated into the
agreement.
(6) Notwithstanding the
definition of state and local revenue, the Department and the recipient
business may specify in the agreement for a program loan or grant what the term
state and local revenue includes. The Department, in its sole discretion, may
impose restrictions in an agreement that specify or limit the state and local
revenue generated that will be included in the calculation of the state and
local revenue generated.
Statutory/Other Authority: ORS
285A.075 & OR Laws 2023 Ch.
25 §3
Statutes/Other Implemented: OR Laws 2023 Ch. 25
§3
