Business Financing
Following are descriptions of some of the most commonly used funding for expanding businesses and traded-sector companies looking to relocate to Central Oregon. Please consult with EDCO at 541-388-3236 for guidance on which of these incentives might qualify for your situation.
Oregon Business Development Loan Fund (OBDF)
The OBDF program is designed to leverage private capital by filling a gap in financing and to provide an incentive for businesses to expand or locate in Oregon. The OBDF provides up to 40% of total project costs with a maximum of $750,000 in the form of long-term, fixed-rate financing for land, buildings, equipment and machinery, or term working capital. Loans, which are typically at incentive rates (75% to 80% of market), are contingent on creation of new jobs or retention of existing jobs. Manufacturing, processing, regionally significant tourism projects and other selected businesses are eligible; rural or distressed areas are emphasized as are emerging small enterprises and those with fewer than 100 employees.
Oregon Industrial Development Revenue Bonds (IRDBs)
The primary goal of IRDBs is to create employment by providing lower cost, tax-exempt capital, typically for value-added manufacturing projects. Only manufacturing projects, exempt facilities (such as solid waste facilities) and bonds for non-profit organizations are eligible. The program offers 100% financing for eligible companies at 75% to 80% of market rates for projects ranging from $2 million to $20 million.
Capital Access Program (CAP)
This program is designed to increase the availability of loans from banks to small businesses by providing loan portfolio insurance so lenders may make business loans that carry higher than conventional risks. A private transaction between borrower and lender, OECDD does not administer the program. CAP loans may be used for almost any business purpose – with only three exceptions -- where the economic benefits occur primarily in Oregon. Consult with EDCO if your business qualifies.
Credit Enhancement Fund (CEF)
The purpose of this fund is to provide guarantees to banks to increase capital availability to small businesses, thereby assisting them to create jobs. Manufacturers, processors, natural resource industries, distribution, new technology and related services businesses qualify. Administered by OECDD, the fund guarantees bank loans, while banks originate and service the loans. Rates are typically above market, reflecting corresponding risk.
Entrepreneurial Development Loan Fund (EDLF)
The EDLF allows the Oregon Economic and Community Development Department to make initial loans of up to $25,000 to entrepreneurial businesses. An additional follow-on loan up to $15,000 may be made. Applicants are required to have business and expense plans and provide at least 20% equity. Additional requirements apply and applicants are encouraged to work through the local Business Development Center (SBDC) to develop a comprehensive business plan.
Workforce Response Team
The program provides funding for cash grants for workforce training and retraining for traded sector employers, those who export at least 75% of goods or services outside the tri-county region. There is no minimum for job creation and typical awards range from $500 to $3,000 per new job created.
jefferson county loan program
Jefferson County has an economic development fund aimed at assisting businesses and other county entities with capital improvements. This is a revolving fund, administered by Central Oregon Intergovernmental Council (COIC). Applications are considered and approved by the County Commissioners.
Visit additional pages in this section regarding Enterprise Zone Incentives and Other Incentives.