Business Assistance: Loans

Interested in applying for a loan? Our loan officer can help you get started, give him a call at 541-676-8208 or email him at gregorysmithandcompany@windwave.org

You can also call the Enterprise office at 541-426-3598 or 800-645-9454. We have several loan programs to serve you. A basic description of the types of loans, what they can be used for and interest rate information is shown below.

The Revolving Loan Fund (RLF) provides long-term, fixed rate financing for land, buildings, equipment and machinery, and permanent working capital.

Maximum loan is 50% of eligible project costs - preferred level of participation is 33%;
Individual loans may not exceed $100,000;
Refinance of existing debt is ineligible;
A minimum of one job must be created for every $15,000 of RLF investment;
The RLF may not supplant private bank financing;
Not recommended for construction projects as Davis-Bacon wage rates are required;
Interest rate normally 1% above prime.

A brief description of the business and its operations and services. Highlight your market, your customers and major competitors.
A description of the project to be developed including the assets to be purchased and their costs.
The number of full and part-time jobs that will be created as a result of this project.
Description of any affiliated corporation, partnerships or businesses in which a principal with 10% or more interest in the parent company also has a 10% or more interest in the affiliated company.
Three years of financial statements for the current business or corporation you are operating. This would include both a balance sheet and a profit and loss statement for each of these years. This requirement does not apply to business start-ups.
Cash flow projections for the business. Explain how this project impacts the projections in terms of new sales and profits.
Personal financial statements and federal tax returns for those principals who own 10% or more of the company.
Interim financial statements for the most current period. These statements should be no older than 30 days.
Complete the application form.

Loans must be fully secured
Loans will normally be subordinated to other project financing.
An equity injection of at least 10 percent will be required.

After consultation with the loan officer, an application may be filled out. There is an application fee of $100. The borrower is responsible for the costs of closing the loan including appraisals, title insurance and a closing fee.

The Intermediary Relending Program (IRP) provides long-term, fixed rate financing for land, buildings, equipment and machinery, and permanent working capital.

Maximum loan is seventy- five percent (75%) of eligible project costs;
Individual loans may not exceed $150,000;
Refinance of existing debt is ineligible;
A minimum of one job must be created for every $25,000 of IRP investment;
The IRP may not supplant private bank financing;
The IRP can be used for permanent construction financing;
Interest rate normally 1% above prime depending on risk.

NEOEDD also provides services for very small businesses, or microentrepreneurs. If you are interested in these services, please contact Lisa Dawson at 541-426-3598 or 800-645-9454 or email to lisadawson@neoedd.org

NEOEDD provides referral services for a number of other loan programs and can make recommendations on financing structures or strategies. We can help you determine the best source of funding for your project. A state loan program can offer low interest rates in return for significant job creation in distressed areas. Other state loan programs can be accessed though banking partners. The SBA 504 program can provide stable, low interest loans for projects that include construction and equipment acquisition. For more information on the state financing programs and tax credits, go to http://www.econ.state.or.us/financeb.htm

NEOEDD can be contacted at 541-426-3598 or 1-800-645-9454. Oregon Economic & Community Development Department (OECDD) can be reached at 503-986-1072.