Or. Admin. R. 123-400-0060 - [Effective until 11/25/2024] Agreements

(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, not including any necessary closeout period to conduct agreement verifications. Recipient businesses shall use loan proceeds only for costs incurred during the term of the agreement, and recipient businesses shall complete revenue /jobs generation obligations during the term of the agreement;

(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 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 not including any necessary closeout period to conduct agreement verifications. Recipient businesses shall use grant proceeds only for costs incurred during the term of the agreement, and recipient businesses shall complete revenue /jobs generation obligations during the term of the agreement.

(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 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.

Notes

Or. Admin. R. 123-400-0060

OBDD 32-2023, adopt filed 11/27/2023, effective 11/29/2023; OBDD 11-2024, temporary amend filed 05/30/2024, effective 5/30/2024 through 11/25/2024

Statutory/Other Authority: ORS 285A.075 & OR Laws 2023 Ch. 25 §3

Statutes/Other Implemented: OR Laws 2023 Ch. 25 §3