72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1185
House Bill 2022
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Special Task Force on
Jobs and the Economy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Eliminates requirement that local government approve of loan
application to Oregon Business Development Fund. Requires notice
of application to affected local government.
A BILL FOR AN ACT
Relating to local government review of loan application to Oregon
Business Development Fund; amending ORS 285B.059.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285B.059 is amended to read:
285B.059. (1) The Oregon Economic and Community Development
Commission may approve a business development project proposed in
an application filed under ORS 285B.050 to 285B.098 if, after
investigation, it finds that:
(a) The proposed business development project is feasible and a
reasonable risk from practical and economic standpoints, and the
loan has reasonable prospect of repayment.
(b) The applicant can provide good and sufficient collateral
for the loan.
(c) Moneys in the Oregon Business Development Fund are or will
be available for the proposed business development project.
(d) There is a need for the proposed business development
project, and the applicant's financial resources are adequate to
{ - assure - } { + ensure + } success of the project.
(e) If the proposed project is to be located in an incorporated
city, the governing body of that city has { - executed a
resolution recommending - } { + received notice of + } the
proposed project.
(f) If the proposed project is to be located outside any
incorporated city, the governing body of the county in which the
project is to be located has { - executed a resolution
recommending - } { + received notice of + } the proposed
project.
(g) The Housing and Community Services Department { + has + }
received { - notification - } { + notice + } of the proposed
project and any related workforce increase at the time the
application was received by the commission.
(h) The applicant has not received or entered into a contract
or contracts exceeding $500,000 with the commission, under
authority of ORS 285B.050 to 285B.098, for the previous 365 days,
nor is there an amount equal to 20 percent of the total value of
the fund in outstanding loans with the commission at any one time
for business development projects located in the same county as
the proposed project. However, nothing in this paragraph prevents
the commission from making a loan to an emerging small business,
as provided in subsection (6) of this section, or making a loan
of less than $100,000, as provided in ORS 285B.080.
(2) Preference shall be given to a business development project
{ - which - } { + that + } has a high ratio of employment to
the amount of money sought to be borrowed from the Oregon
Business Development Fund, { - which - } { + that + }
benefits businesses with fewer than 50 employees or
{ - which - } { + that + } is located within a rural area of
the state. Consideration also shall be given to the extent of
participation by local development groups, and the availability
and cost of money to the applicant from, or through, commercial
lending or financial institutions, or other financial sources,
inasmuch as the Oregon Business Development Fund is intended to
complement, not supplant, other sources of money for economic
development.
(3) The total amount of moneys loaned from the fund for any
business development project shall not exceed 50 percent of the
cost of the project. Working capital equity contributed by the
applicant or a related party shall not be included in the
calculation of total project costs.
(4) Except in cases where the applicant is a county or
municipality, no money shall be loaned from the fund for any
business development project unless there exists a commitment
from a commercial or private lender, or a local development
group, to participate in the financing of the project.
(5) To encourage private sector and local development group
participation in the financing of business development projects,
the commission may subordinate the security position of the fund
to that of other lenders.
(6) In each fiscal year of a biennium, not less than 15 percent
of all moneys available for lending from the Oregon Business
Development Fund are reserved for loans to certified emerging
small business enterprises { - which - } { + that + } are
located in or draw their workforces from within distressed
communities as determined by the Economic and Community
Development Department in cooperation with the Employment
Department of this state. Any amounts reserved for loans to such
businesses that are not loaned in one fiscal year shall be added
to the amount reserved for loans to such businesses in the
subsequent fiscal year. If the Economic and Community Development
Department is unable to obtain a sufficient number of approvable
applications to meet the requirements of this subsection, it may,
notwithstanding the limitations imposed by ORS 285B.050
(1)(g)(B), make loans to service and retail businesses operated
by certified emerging small business enterprises.
(7) In the operation of the Oregon Business Development Fund,
the commission and the department shall, to the maximum extent
feasible and consistent with constitutional limitations, seek to
{ - assure - } { + ensure + } that an amount equal to that
specified in subsection (6) of this section { - be - }
{ + is + } loaned to businesses owned and operated by women and
minorities.
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