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 almost any business,
- can include loans used for fixed assets or working capital,
- 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
- subject to other criteria outlined in the CEF Application and Oregon Administrative Rule.