Oregon Business Development Fund

The Oregon Business Development Fund (OBDF) is a revolving loan fund that provides term fixed-rate financing for land, buildings, equipment, machinery and permanent working capital. Participants must create or retain jobs and must typically be a traded-sector business in manufacturing, processing or distribution. The program gives preference to projects located in rural and distressed areas and to small businesses with fewer than 100 employees.

Loans have:

• a maximum amount of $700,000,
• a maximum term and amortization of 20 years or the useful life of the project and/or collateral,
• a fixed interest rate of U.S. treasury Bills plus 1% APR (4% minimum APR) and
• a 1.5% loan origination fee.

Applications must show the business:

• has the ability to create or retain jobs as a result of the loan,
• is a traded-sector manufacturing, production, processing or distribution company,
• has a commitment to lend from a qualified private financial partner or economic development organization,
• can provide good and sufficient collateral for the loan,
• possesses a reasonable capacity to repay the loan and
• meets other criteria outlined in the OBDF Application and Oregon Administrative Rule.