OAR 123-017-0030
Loan Conditions
(1)
The Director (for loan requests of $250,000 or less) or the Finance Committee may approve a loan request if it finds that:(a)
Fund participation in any financing shall not exceed 40 percent of the total amount of the eligible project costs, except that Fund financing may be up to 50 percent when an application is submitted through a Financial institution or Fund financing may exceed 40 percent when two or more Financial Institutions have denied financing as outlined in OAR 123-017-0015 (Eligibility)(10).(b)
The proposed business development project is feasible and a reasonable risk from practical and economic standpoints, and the loan has reasonable prospect of repayment.(c)
The applicant can provide good and sufficient collateral for the loan, as determined by the Commission. The Commission’s security interest may be subordinated to the security interest of other lenders participating in the project. The security interest of loans from the Oregon Targeted Development Account will not be subordinated to the security interest of other lenders, unless the Finance Committee or the Director finds there is an abundance of collateral and/or company or guarantor financial strength. The Business Development Commission may make loans in distressed areas, as defined by the Department, without regard to the requirements for security and collateral under ORS 285B.059 (Conditions for commission approval of project) and 285B.062 (Loan contract) that are otherwise applicable. Collateral value of out-of-state real property will be significantly discounted from nominal assessed or appraised value.(d)
Monies in the Oregon Business Development Fund are or will be available for the proposed business development project.(e)
There is a need for the proposed business development project.(f)
The applicant’s financial resources are adequate to ensure success of the project.(g)
The applicant has not received or entered into a contract or contracts exceeding $1,000,000 with the Commission, under authority of ORS 285B.050 (Definitions for ORS 285B.050 to 285B.098)–285B.098 (Status of loan to county or municipality), for the previous 365 days.(2)
The Finance Committee may, in its sole discretion, permit the assumption of an outstanding Oregon Business Development Fund Loan, if the assuming obligor satisfies the Finance Committee or the Director as to its willingness and ability to perform all obligations of the original borrower related to the loan, including but not limited to the obligation to repay the loan in accordance with its terms, and if the State’s collateral position is not diminished. Oregon Business Development Fund loans are not, however, necessarily or automatically assumable. A complete application, application fee and supporting documentation are required to initiate review of the request.(3)
The applicant and applicant’s project are, and will remain, compliant with all local, state and federal laws and regulations.
Source:
Rule 123-017-0030 — Loan Conditions, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-017-0030.