Borrower Guide
Step 1: Call Oregon Business Development
To discuss your commercial real estate project.
Step 2: Call your banker
Your Oregon Business Development (OBD) loan officer will make the process as easy as possible by working closely with your banker to pre-qualify your project, discuss eligibility, and determine a preliminary loan structure for your review. Final application materials will be assembled (with an OBD loan officer) and a timeline will be established for funding your loan.
Step 3: Appraisal and Assessment
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
Step 4: Approval Process and Commitment Letters
Your bank and OBD will finish their approval process, issue commitment letters, and 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).
Your bank will fund both the bank portion and the OBD portion of your project. This represents both the first and second mortgages of your financing package. Later, OBD will replace the temporary second mortgage with a permanent one. Then you will have a permanent bank first mortgage and a permanent OBD second mortgage.
Project Types
Purchase of an existing building
We will start the closing process for the OBD 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 OBD 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 OBD loan.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 OBD closing process can start. You will be asked to sign closing documents for funding a bond, which will become your OBD 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 OBD loan.
Step 5: Permanent Loan
Your bank first mortgage is now a permanent loan, as is your OBD second mortgage. We will ask you for business tax returns each year, and will check with you two years after your loan has closed to verify the number of employees.