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.
Notes
Or. Admin. Code §
123-019-0020
EDD 16-1991(Temp), f.
& cert. ef. 11-8-91; EDD 12-1992, f. & cert. ef. 8-26-92; EDD
7-1993(Temp), f. & cert. ef. 9-17-93; EDD 3-1994, f. 2-4-94, cert. ef.
2-7-94; EDD 11-1997(Temp), f. & cert. ef. 10-7-97; Reverted to EDD 3-1994,
f. 2-4-94, cert. ef. 2-7-94; EDD 10-1998, f. & cert. ef. 5-22-98; EDD
5-2007(Temp), f & cert. ef. 8-28-07 thru 2-22-08; Reverted to EDD 10-1998,
f. & cert. ef. 5-22-98; EDD 4-2008(Temp), f. & cert. ef. 2-26-08 thru
8-1-08; EDD 23-2008, f. 7-31-08, cert. ef. 8-1-08; OBDD 10-2010(Temp), f. &
cert. ef. 4-12-10 thru 10-9-10; OBDD 34-2010, f. & cert. ef. 10-1-10; OBDD
12-2014, f. 6-30-14, cert. ef. 7-1-14; OBDD 2-2021, temporary amend filed
01/19/2021, effective 1/19/2021 through 7/9/2021;
OBDD
7-2021, amend filed 07/02/2021, effective
7/2/2021; OBDD 4-2022, temporary
amend filed 03/09/2022, effective 03/09/2022 through 09/02/2022;
OBDD
1-2023, amend filed 01/18/2023, effective
1/18/2023
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
