(1) The Oregon Business Development Department may approve an entrepreneurial development loan under ORS § 285B.740 to 285B.758 if, after investigation, it finds that:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(a) The loan has a reasonable prospect of repayment from cash flow and collateral and is secured by good and sufficient collateral; and

(b) The applicant provides equity funds for the project in the form of cash or property in an amount equal to or greater than:

(A) Fifteen percent of the amount of the project proceeds used for working capital and equipment; or

(B) Ten percent of the amount of the project proceeds used to acquire real property.

(2) The department shall determine the amount of the initial loan and any subsequent loan to a borrower from the Oregon Entrepreneurial Development Loan Fund. The total of all loans to any borrower from the fund may not exceed $1 million.

(3) Entrepreneurial development loans shall be made for a term that does not exceed 10 years at a rate of interest that does not exceed 18 percent per annum. [1991 c.688 § 9; 1997 c.147 § 6; 2007 c.804 § 39; 2009 c.830 § 133; 2010 c.106 4,8; 2011 c.558 § 5; 2014 c.3 § 3; 2020 s.s.2 c.10 26,27; 2022 c.2 § 4]

[1991 c.688 § 10; 1997 c.147 § 7; 2001 c.684 § 22; repealed by 2007 c.804 § 86]