Lane Metro Partnership

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Lane County, Oregon Feb 27, 2017

Development Incentives

Financial Programs

Cascades West Microloan Program provides new or existing businesses with extra capital for any purpose. It is limited to businesses in a 14-county section of western Oregon. A developed business plan is required. Loan amounts can be up to $25,000 for up to six years with a 20% match from owner equity. Interest rates for the Microloan program fluctuate and are set at the time of the loan. LCOG, Government Loan Programs

Cascades West Revolving Loans may finance land and buildings; equipment and machinery; and working capital. Amounts range from $5,000 to $150,000 but may not exceed one-third of the total project cost. Basic requirements include the creation of one new job for every $15,000 borrowed. LCOG, Government Loan Programs

Eugene Business Development Funds may finance land and building acquisition and improvements, equipment, trade fixtures, and permanent working capital. EBDF has below-market interest rates and lending decisions are made locally. Lending amounts are up to $500,000. Basic requirements include one job for every $10,000 borrowed. Eugene Business Development

Oregon Industrial Development Revenue Bonds. The Oregon Economic & Community Development Commission issues Industrial Development Revenue Bonds for manufacturing and processing facilities in Oregon. The rate can be 75-80% of conventional rates. Project funds range from $1.5 to $10 million. OECCD - Financial Programs

Oregon Business Development Fund OBDF. Revolving Loan Fund Projects that assist manufacturing, processing and regionally significant tourism projects are eligible. The fund provides long-term, (fixed-rate Treasuries +1%) financing for land, buildings, equipment, machinery and permanent working capital. Creation of new jobs or retention of exiting jobs is required. The program places particular emphasis on rural and distressed areas and on businesses with fewer than 50 employees. The maximum loan is $500,000 or 40% of a project, and may be subordinated to a senior lender. OECCD - Financial Programs

OBDF Targeted Development Accounts are loans made at a rate of 4% less then the prime rate. The maximum term is five years, with a maximum amortization of 15 years. Loans from the Targeted Account must have either a senior or co-senior lien position on the assets. OECCD - Financial Programs

Oregon Capital Access Program is designed to increase the availability of loans from banks to small businesses. The program provides a form of loan portfolio insurance so lenders can make business loans that carry higher than conventional risks, but are within the soundness and safety requirements of federal and state banking regulations. OECCD - Financial Programs

Oregon Credit Enhancement Fund helps small business firms create jobs by providing guarantees, thereby increasing capital availability. The fund can guarantee working capital or fixed asset bank loans. Banks originate and service the loans and the Oregon Community and Economic Development Department reviews and approves the loan guarantees. OECCD - Financial Programs

Oregon Research & Technology Development Account's (ORTDA) charter is to provide early-stage funding, management assistance, and business development support for new companies. Its current priority is to provide the early-stage capital to commercialize technology developed at Oregon's public and private universities and research institutions. OECCD - Financial Programs

Oregon Special Public Works Fund provides Oregon lottery money for public infrastructure supporting business development projects that create or retain permanent jobs. Eligible applicants include Oregon cities and counties, port districts, water and sewer districts, metropolitan service districts and federally recognized Indian tribes. Funding takes form as a loan or a combination of loans and grants made available through direct financing or from the sale of revenue bonds sold through the Oregon Bond Bank. Loans of up to $10 million are available. Grants of up to $500,000 are available if the municipality demonstrates it cannot service loan financing and if businesses commit to job creation. OECCD - Financial Programs

Rural Business Development Fund (USDA) provides funds for businesses in rural Lane County. It requires that businesses are located outside Eugene-Springfield city limits. Funds cannot be given to agricultural or recreational tourism businesses. One job must be created for every $35,000 in loan funds. Loan amounts can be up to $150,000 or 75% of the project cost. Fees include a $150 application fee and 1.5% of loan amount at closing. LCOG, Government Loan Programs

Small Business Administration 7A Loan Program (SBA) guarantees up to 90% of a loan by a participating commercial lender to small businesses. The SBA 7A program may finance working capital, fixed asset acquisition, and leasehold improvements. Amounts are for up to $750,000 guaranteed (with exceptions for export businesses and environmental clean-up projects). Some business equity is required. LCOG, Government Loan Programs

Small Business Administration 504 Loan Program (SBA) offers fixed-interest loans at below market rates for construction, acquisition or rehabilitation of buildings; leasehold improvements; machinery and equipment. Amounts range up to $750,000 and up to $1,000,000 for rural projects, but for no more than 40% of the total project costs. Business equity of at least 10% is required and private financing is required for the remainder. One job must be created for every $35,000 loaned. LCOG, Government Loan Programs

Small Business Innovation Research Program (SBIR) provides grants from federal agencies for early stage research and development activities of young or start-up high tech firms that can meet specific agency needs. Amounts are variable. Only for-profit organizations with 500 or fewer employees are eligible. LCOG, Government Loan Programs

Small Scale Energy Loan Program (SELP) specifically finances energy conservation and renewable energy projects, including eligible equipment costs; construction; design and consultant fees; some reserves and construction interest. Basic requirements are: the project must conserve conventional energy or produce renewable energy. The borrower must provide loan security in the form of land, buildings, equipment, or other assets. Oregon Department of Energy - Loan Program

Tax Incentives

Enterprise Zones offers a three-year, 100% property tax abatement on buildings and equipment. Qualifying zones are currently available in Cottage Grove, Springfield, Florence, and Oakridge. There is a pre-certification fee in the amount of $200 or 2% of the first year's estimated tax savings. OECDD, Eugene Office

Tax Credits exist in a variety of programs which include credits for pollution control, dependent care, energy conservation, reclaimed plastic products, investments made to recycle and redirect waste materials from landfill, and a research tax credit. Oregon Department of Revenue

Workforce Incentive Programs. Screening and evaluation programs may be available to employers at little or no cost. The programs are coordinated by the Oregon Employment Department, the Lane Workforce Partnership, and Lane Community College. A pilot project by the State Employment Department will assess transferable skills to match applicants with employers. In addition, the Lane Workforce Partnership is one of Lane County's best resources for employers. Besides offering financial incentives for hiring low-income youth, adults and dislocated workers, the Lane Workforce Partnership offers services that include recruitment and screening, as well as vocational assessment. A customized training program is coordinated by the Lane Workforce Partnership, the employer, and Lane Community College.

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