(1) The Oregon Economic and Community Development Commission may approve a business development project proposed in an application filed under ORS 285B.050 to 285B.098 if, after investigation, the commission finds that:
(a) The proposed business development project is feasible and a reasonable risk from practical and economic standpoints, and that the loan has reasonable prospect of repayment.
(b) The applicant can provide good and sufficient collateral for the loan.
(c) Moneys in the Oregon Business Development Fund are or will be available for the proposed business development project.
(d) There is a need for the proposed business development project.
(e) The applicant has not received or entered into a contract or contracts exceeding $1 million with the commission, under authority of ORS 285B.050 to 285B.098, for the previous 365 days.
(2) The total amount of moneys loaned from the fund for any business development project shall not exceed 50 percent of the cost of the project.
(3) Except when the applicant is a county or municipality or when there are payments other than the scheduled principal and interest payments, no money shall be loaned from the fund for any business development project unless there exists a commitment from a commercial or private lender, or a local development group, to participate in the financing of the project.
(4) To encourage private sector and local development group participation in the financing of business development projects, the commission may subordinate the security position of the fund to that of other lenders.
(5) In each fiscal year of a biennium, not less than 15 percent of all moneys available for lending from the fund are reserved for loans to certified emerging small business enterprises which are located in or draw their workforces from within distressed areas as determined by the Economic and Community Development Department in cooperation with the Employment Department of this state. Any amounts reserved for loans to such businesses that are not loaned in one fiscal year shall be added to the amount reserved for loans to such businesses in the subsequent fiscal year. If the Economic and Community Development Department is unable to obtain a sufficient number of approvable applications to meet the requirements of this subsection, it may, notwithstanding the limitations imposed by ORS 285B.050 (2)(g)(B), make loans to service and retail businesses operated by emerging small business enterprises. [Formerly 285.413; 1999 c.509 §27; 2003 c.167 §2; 2007 c.804 §43]
Section: Previous 285B.050 285B.053 285B.056 285B.059 285B.062 285B.065 285B.068 285B.071 285B.074 285B.077 285B.080 285B.081 285B.083 285B.086 285B.089 NextLast modified: August 7, 2008