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 $1,000,000,
  • 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.

New, Revenue Financing Pilot Program

The Small Business Expansion Program, operating within the OBDF direct loan program, is a new alternate financing solution, allowing businesses to pay a periodic revenue payment as a percentage of net sales combined with scheduled monthly payments of principal and interest (fixed rate) to accommodate growing companies that may not qualify for traditional financing. Learn more >>