ORS 285B.749 Additional conditions for loan approval; maximum term and amount of loan

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

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

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

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

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

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.

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.