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 guarantees loans made by lenders providing working capital or fixed-asset loans to businesses. The program:

• is available for traded-sector manufacturing, production, processing and distribution companies,
• can assist most business located in a designated distressed area,
• 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 3.0% of the insured amount based on the term of the credit facility.

Loan guarantees are:

• typically up to 80% of the loan amount, up to $2,000,000 exposure for term loans,
• a maximum term that does not exceed the useful life of assets securing the loan or being financed with a maximum term of 15 years,
• typically, up to 75% of the loan, up to $1,500,000 exposure for operating lines of credit,
• a maximum term of one year for operating lines of credit,
• eligible for business loans and operating lines made by financial institutions (banks and credit unions) and
• meet other criteria outlined in the CEF Application and Oregon Administrative Rule.