Our Other Small Business Loan Programs

Our Other Small Business Loan Programs

For Borrowers

An Alternative to Traditional Business Lending

In addition to the SBA 504 real estate loan program, Oregon Business Development Corporation (OBDC) offers three other small business loan programs. These programs typically provide financing in cooperation with a regular bank loan, but in some cases the loans can be used as stand-alone financing. All three of the programs offer:

  • A financing option for your business, even if you have been turned down for a traditional bank loan.
  • A reasonable interest rate fixed for the life of the loan, typically 6.75% to 8.75%.
  • No prepayment penalties.
  • Loan terms as long as 20 years for real estate and 10 years for equipment.
  • Loans for both start-up and existing businesses.
  • Flexibility – loans can be used for most business purposes, including the purchase of real estate, construction of a new building, the purchase of equipment, working capital, business acquisition (restrictions apply), and refinance (subject to eligibility review).
  • Note – all loan approvals are subject to additional eligibility and credit review, funding availability, and cannot be made if traditional bank financing is available on reasonable terms and conditions.

 Call today for prequalification information (541) 548-9538 or (541) 548-9541

 

Statewide Loan Program

The OBDC Statewide Loan Program is open to all small businesses in Oregon. Loan applicants must meet U.S. Small Business Administration (SBA) eligibility criteria. This extremely flexible program has the following features:

  • Loans from $25,000 to $200,000.
  • Loan can be made in conjunction with a bank loan or as stand-along financing.
  • Minimum down payment for real estate projects is typically 10% of the project cost.
  • Minimum down payment for start-up business financing is typically 25% of the project cost.
  • Minimum down payment for all other project types can vary depending up credit review and whether or not there is participation from a bank lender in the financing package.
  • There is an origination fee of 1.0% of the loan amount; closing costs include any applicable escrow charges, title insurance, filing fees, and legal fees (fees may be included in the loan amount).
  • Maximum interest rate is 7.0% for loans greater than $50,000 and 8.75% for loans less than or equal to $50,000.
  • Projects should create new job opportunities or retain existing jobs that might otherwise be lost.

 

Rural Loan Program

The Rural Loan Program is offered through our sister organization, Central Oregon Intergovernmental Council (COIC). Loans are available to eligible new or existing small businesses located in the following counties: Coos, Crook, Curry, Deschutes, Douglas, Harney, Hood River, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Malheur, Sherman, and Wasco. Click here to see a map of eligible areas. Our COIC Rural Loan Program is available only in those cities with a population of less than 50,000. Here are the basic features of this loan program:

  • Maximum loan size is $250,000 or 75% of total project costs, whichever is less. Minimum loan size is $25,000.
  • Loan can be made in conjunction with a bank loan or as stand-alone financing.
  • Minimum down payment for real estate projects is typically 10% (requires participation from a bank or other lender, since the Rural Loan Program can cover a maximum of 75% of project cost).
  • Minimum down payment for start-up business financing is typically 25% of the project cost.
  • Minimum down payment for all other project types can vary depending up credit review and whether or not there is participation from a bank lender in the financing package.
  • There is an origination fee of 1.5% of the loan amount; closing costs include any applicable escrow charges, title insurance, filing fees, and legal fees (fees may be included in the loan amount).
  • Projects should create new job opportunities or retain existing jobs that might otherwise be lost.

 

Regional Loan Program

The Regional Loan Program is also offered through our sister organization, Central Oregon Intergovernmental Council (COIC). Loans are available to eligible new or existing small businesses located in the following counties: Crook, Deschutes, Harney, Jefferson, Klamath, and Lake. Click here to see a map of eligible areas. Here are the basic features of this loan program:

  • Loans from $25,000 to $250,000.
  • Loan can be made in conjunction with a bank loan or as stand-alone financing in some cases.
  • Minimum down payment for real estate projects is typically 10% of the project cost.
  • Minimum down payment for start-up business financing is typically 25% of the project cost.
  • Minimum down payment for all other project types can vary depending up credit review and whether or not there is participation from a bank lender in the financing package.
  • There is an origination fee of 1.5% of the loan amount; closing costs include any applicable escrow charges, title insurance, filing fees, and legal fees (fees may be included in the loan amount).
  • Projects should create new job opportunities or retain existing jobs that might otherwise be lost.