OAR 123-091-0025
Loan Agreement
(1)
The Business must enter into a First Source Agreement in accordance with OAR 123-070;(2)
The Business, to the extent practicable, must consult with vendors in Oregon before entering into contracts for goods and services;(3)
The Business must duly execute and deliver the following to the Department within 90 days from the date the loan was approved:(a)
Loan agreement;(b)
Promissory note;(c)
If required, a copy of the First Source Agreement; and(d)
Any other certificates, opinions and documents as the Department may reasonably require regarding the authorization of the loan agreement, the promissory note and any related documents.(4)
Loan funds must be disbursed to the Business no later than 120 days after the loan was approved, provided that the Department, in the reasonable exercise of its administrative discretion, has made a determination that there are sufficient funds in the OBEP Fund to make the disbursement;(5)
The terms for forgiveness of the loan, which will, among other items, require that the personal income tax estimated to be generated by the new Full-time Jobs in no more than two consecutive calendar years is equal to or exceeds the amount of the loan and that the actual number of new Full-time Jobs is equal to or exceeds the number of Full-time Jobs proposed at the time the loan was approved. The Department intends to obtain information to calculate the personal income tax estimated to be generated by the new Full-time Jobs and the actual number of new Full-time Jobs from the Oregon Employment Department. If the Department is not able to obtain information from the Oregon Employment Department to make these calculations, the Business will be required to provide comparable information, as the Department may reasonably request, to the Department.(6)
If the personal income tax estimated to be generated by the new Full-time Jobs (“Total PIT”) is less than the amount of the loan, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (Total PIT / the loan amount)). If the actual number of new Full-time Jobs is less than the number of new Full-time Jobs proposed at the time the loan was approved, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (the actual number of new Full-time Jobs / the required number of new Full-time Jobs); and(7)
The Business must submit a report to the Department which lists categories of new positions created in the time period used to calculate the personal income tax, as described in paragraph e. above, the average hourly wage of the new positions, and the number of persons hired to fill those positions.
Source:
Rule 123-091-0025 — Loan Agreement, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-091-0025.