1. Call Oregon Business Development to discuss your commercial real estate project as early as possible. Also, call your banker, so everyone can work together to get your application done quickly. Your Oregon Business Development loan officer will make the process as easy as possible, by working closely with your banker.

2. Your banker and an Oregon Business Development loan officer will pre-qualify your project, discuss eligibility, and determine a preliminary loan structure for your review.

3. Final application materials will be assembled (your Oregon Business Development loan officer will help you with this) and a timeline will be established for funding your loan.

4. At this point, your banker will order an appraisal and a Phase I environmental site assessment (if required). This will save time, since loan approval can be contingent upon completion of the appraisal and Phase I.

5. Your bank and Oregon Business Development will finish their approval process and issue commitment letters.

6. Your banker and your Oregon Business Development loan officer will explain the terms of the loan commitments. If you agree with the terms, your bank will set an estimated loan closing date. In the meantime, the appraisal and Phase I will be completed (prior to loan closing).

7. Your bank will fund both the bank portion and the Oregon Business Development portion of your project. This represents both the first and second mortgages of your financing package. Later, Oregon Business Development will replace the temporary second mortgage with a permanent one. Then you will have a permanent bank first mortgage and a permanent Oregon Business Development second mortgage.

8. If your project is the purchase of an existing building, we will start the closing process for the Oregon Business Development portion of your loan as soon as your bank has closed on the building purchase. You will be asked to sign closing documents for funding a bond, which will become your Oregon Business Development second mortgage. Funding of the bond usually takes 10 weeks. When the bond funds, your bank will be wired the money to replace the temporary second mortgage with your permanent Oregon Business Development loan.

9. If your project is for the construction of a new building, your bank will fund the purchase of the land and will manage construction disbursements. When your building is finished, the Oregon Business Development closing process can start. You will be asked to sign closing documents for funding a bond, which will become your Oregon Business Development second mortgage. Funding of the bond usually takes 10 weeks. When the bond funds, your bank will be wired the money to replace the temporary second mortgage with your permanent Oregon Business Development loan.

10. Your bank first mortgage is now a permanent loan, as is your Oregon Business Development second mortgage. We’ll ask you for business tax returns each year, and we’ll check with you two years after your loan has closed to verify the number of employees. We wish you the best with your growing business, and congratulations on your new project!