This text of Oregon § 285B.059 (Conditions for commission approval of project; limits; exceptions) is published on Counsel Stack Legal Research, covering Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(1)The Oregon Business 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 $2 million with the commission, under authority of ORS 285B.050 to Free access — add to your briefcase to read the full text and ask questions with AI
(1) The Oregon Business 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 $2 million with the commission, under authority of ORS 285B.050 to 285B.098, for the previous 365 days.
(2)(a) Except as provided in paragraph (b) of this subsection, the total amount of moneys loaned from the fund for a business development project may not exceed 50 percent of the cost of the project.
(b) The total amount of moneys loaned from the fund for a business development project may exceed 50 percent of the cost of the project if two or more lenders have denied requests from the applicant to commit to participate in the financing of the project and the applicant has no other available financing.
(3)(a) Except as provided in paragraph (b) of this subsection, moneys may not be loaned from the fund for a 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.
(b) Moneys may be loaned from the fund for a business development project without a commitment from a commercial or private lender, or a local development group, to participate in the financing of the project if:
(A) The applicant is a county or municipality;
(B) There are payments other than the scheduled principal and interest payments; or
(C) Two or more lenders have denied requests from the applicant to commit to participate in the financing of the project and the applicant has no other available financing.
(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, 15 percent of all moneys available for lending from the fund is reserved for loans to emerging small business enterprises as defined by the Oregon Business Development Department by rule, which are located in or draw their workforces from within rural or distressed areas as determined by the Oregon Business Development Department in cooperation with the Employment Department of this state. If the Oregon Business Development Department was unable to obtain a sufficient number of approvable applications to meet the requirements of this subsection in the previous fiscal year, it may, in the current fiscal year and notwithstanding the limitations imposed by ORS 285B.050 (2), make loans, in an amount that does not exceed the 15 percent reserved for the prior fiscal year less the amount of loans made to emerging small business enterprises located in rural or distressed areas during the previous fiscal year, to service and retail businesses operated by small business enterprises that are located in or draw their workforces from within rural or distressed areas as determined by the Oregon Business Development Department in cooperation with the Employment Department of this state. Service and retail businesses operated by small business enterprises under this section need not be engaged in traded sector activities. As used in this subsection, “rural area” and “distressed area” have the meanings given those terms in ORS 285A.010.