Oregon Credit Enhancement Fund

The Oregon Credit Enhancement Fund (CEF) is a loan insurance program available to lenders to assist businesses in obtaining access to capital.

The fund insures the repayment of loans made by lenders that provide working capital or fixed-asset financing to businesses. The program:

  • is available to most any existing or new business through June 30, 2015,
  • can assist businesses that are using proceeds to clean up a brownfield site,
  • can include loans used for fixed assets, working capital or export financing,
  • can insure term loans and lines of credit and
  • has an enrollment fee typically between 1.25% and 3.5% of the insured amount based on the term and type of the credit facility.

Loan insurance is:

  • typically up to 80% of the loan amount for term loans with a maximum insurance exposure of up to $2,000,000,
  • a maximum term that does not exceed the useful life of assets securing the loan or a maximum term of 15 years,
  • typically, up to 75% of the loan for operating lines of credit with a maximum insurance exposure of $1,500,000,
  • a maximum initial term of one year for operating lines of credit,
  • available on business term loans and operating lines made by participating financial institutions (banks and credit unions)
  • available for secured loans (usually needing full collateral coverage except for First Loss Collateral Support Insurance) and
  • is subject to other criteria outlined in the CEF Application and Oregon Administrative Rule.