justicedao/ipfs_state_laws huggingface dataset:
123-091-0010 Definitions For the purpose of this rule, the following terms shall have the following meanings: (1) “Business” means any individual, association of individuals, joint venture, partnership, limited liability company or corporation which is validly existing and authorized to conduct business in Oregon. (2) “Calendar year” means an individual’s tax year of January 1–December 31. (3) “Department” means the Oregon Business Development Department as established under ORS 285A.070. (4) “Director” means the director of the Department as appointed under ORS 285A.070. (5) “Eligible Employee” means a new employee of the Business: (a) Who will have an annual wage that is at least 150% of the most recently available average pay for the county in which the new job will be created or the most recently available average pay for the state, both as determined by the Oregon Employment Department in the Covered Employment and Wages Summary Report, whichever is less; (b) Who will be hired by the Business at its Oregon facility before the end of the two calendar years following the year of OBEP loan approval; (c) For whom FICA and state and federal income taxes are deducted from his/her gross wages, which are then forwarded to the appropriate agencies by the Business on behalf of the person; (d) For whom the Business pays state and federal unemployment insurance; and (e) For whom the Business contributes to FICA. (6) “Full-time Job” one Full-time Job equals 1,820 Hours Worked in a one-year period. (7) “Hours Worked” means all hours that the employee worked, if the employee is paid for those hours. “Hours worked” does not include holiday, vacation time, sick leave or any other paid time where no work is performed. (8) “OBEP Fund” means the Oregon Business Retention and Expansion Fund. Statutory/Other Authority: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11 Statutes/Other Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11 History: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12
123-091-0015 Criteria for OBEP Fund Loan In order to be eligible for a loan from the OBEP Fund, the Department must first find: (1) That, at the time a loan from the OBEP Fund is considered for approval, the Business: (a) Has at least 150 employees as demonstrated by documentation determined to be acceptable by the Department; (b) Is a traded sector business, as defined in ORS 285A.010; (c) Is not a retailer, as defined in ORS 72.8010; (d) Plans to hire at least 50 full-time Eligible Employees before the end of the two calendar years following the year in which the OBEP loan is approved; (e) Has stated to the Department that a loan from the OBEP was an integral factor in the Business’s decision to hire at least 50 full-time Eligible Employees; and (f) Has provided all information to the Department as requested and as required by the Oregon Business Retention and Expansion Program; (2) That the Business’s proposed expansion will result in significant, long-term economic benefit in the region and will serve as a catalyst for additional economic development benefits in the state. Statutory/Other Authority: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11 Statutes/Other Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11 History: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12
123-091-0020 Approval and Amount of OBEP Fund Loan (1) The Director, or his designee, in his sole discretion, shall determine whether to approve a loan to a Business from the OBEP Fund and the amount of the loan. (2) A loan from the OBEP Fund shall not exceed the lesser of: (a)(A) The amount of estimated Oregon personal income taxes to be paid in the two calendar years following the year of OBEP loan approval by Eligible Employees, using the result of the following formula: (B) Average wage of all Eligible Employees multiplied by the applicable Tax as a Percent of Taxable Income from Table B: Average Income and Tax (Dollars) in the Oregon Department of Revenue’s most recently published Oregon Personal Income Tax Statistics, All Returns and Full-Year Resident Returns (by AGI) multiplied by 2. (b) The amount currently available in the OBEP Fund. Statutory/Other Authority: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11 Statutes/Other Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11 History: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12
123-091-0025 Loan Agreement After approval of a loan from the OBEP Fund, the Department will enter into a loan agreement with the Business. Among other items, the loan agreement will contain the following provisions: (1) The Business must enter into a First Source Agreement in accordance with OAR 123-070; (2) The Business, to the extent practicable, must consult with vendors in Oregon before entering into contracts for goods and services; (3) The Business must duly execute and deliver the following to the Department within 90 days from the date the loan was approved: (a) Loan agreement; (b) Promissory note; (c) If required, a copy of the First Source Agreement; and (d) Any other certificates, opinions and documents as the Department may reasonably require regarding the authorization of the loan agreement, the promissory note and any related documents. (4) Loan funds must be disbursed to the Business no later than 120 days after the loan was approved, provided that the Department, in the reasonable exercise of its administrative discretion, has made a determination that there are sufficient funds in the OBEP Fund to make the disbursement; (5) The terms for forgiveness of the loan, which will, among other items, require that the personal income tax estimated to be generated by the new Full-time Jobs in no more than two consecutive calendar years is equal to or exceeds the amount of the loan and that the actual number of new Full-time Jobs is equal to or exceeds the number of Full-time Jobs proposed at the time the loan was approved. The Department intends to obtain information to calculate the personal income tax estimated to be generated by the new Full-time Jobs and the actual number of new Full-time Jobs from the Oregon Employment Department. If the Department is not able to obtain information from the Oregon Employment Department to make these calculations, the Business will be required to provide comparable information, as the Department may reasonably request, to the Department. (6) If the personal income tax estimated to be generated by the new Full-time Jobs (“Total PIT”) is less than the amount of the loan, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (Total PIT / the loan amount)). If the actual number of new Full-time Jobs is less than the number of new Full-time Jobs proposed at the time the loan was approved, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (the actual number of new Full-time Jobs / the required number of new Full-time Jobs); and (7) The Business must submit a report to the Department which lists categories of new positions created in the time period used to calculate the personal income tax, as described in paragraph e. above, the average hourly wage of the new positions, and the number of persons hired to fill those positions. Statutory/Other Authority: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11 Statutes/Other Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11 History: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12
123-091-0030 Waivers The Director, or his designee, may waive non-statutory requirements of this division of administrative rule if such a waiver will serve to further the goals of the Oregon Business Retention and Expansion Program. Statutory/Other Authority: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11 Statutes/Other Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11 History: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12
123-092-0010 Purpose The purpose of these rules is to provide procedures, standards and criteria for the making of loans from the Small Business Expansion Loan Fund, also referred to as the Oregon Royalty Fund (ORF). Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092 & OL Ch 71 2018 History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0030 Eligibility (1) Eligible projects are business development projects as defined in OAR 123-092-0020(2). (2) To be eligible, an applicant must operate an Oregon Growth Business. (3) The primary focus of ORF is to provide net, new money financing for Oregon Growth Businesses. However, applications to refinance an Oregon Growth Business’s existing debt or equity financing may be considered on a limited basis at the sole discretion of the Department. Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092 & OL Ch 71 2018 History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 13-2019, amend filed 09/04/2019, effective 09/04/2019 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0040 Reserved Loans The Department may reserve up to 20 percent of all moneys available for lending in the ORF on July 1 of each fiscal year for loans during the fiscal year that begins on that day to applicants who are individuals or for which a majority of whose owners are individuals considered to have low to moderate household income and low to moderate personal net worth, as defined by the Department, and who operate businesses: (1) Controlled and with at least 51 percent ownership interest by minorities (as defined by the Department), women, or honorably discharged veterans; or (2) That are located outside of the Portland, Oregon, Metropolitan Statistical Area. Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092 & OL Ch 71 2018 History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 13-2019, amend filed 09/04/2019, effective 09/04/2019 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0050 Application Procedure (1) An applicant may submit an application to the Department on a form or in a format approved by the Department, together with an Application Fee. (2) If the amount of the loan being sought from the Fund is $250,000 or less, the Director may in the Director's sole discretion approve or deny the loan request or make a recommendation to the Finance Committee for the Committee's consideration. (3) For loan requests that exceed $250,000, the Department may deny the loan requested or make a recommendation to the Finance Committee, which may then in its sole discretion approve or deny the loan request. (4) If a loan request is approved, the Department shall prepare the documents necessary to close the loan transaction. Such documents shall reflect all terms and conditions upon which the Finance Committee conditioned approval of the loan. Any material modifications of those terms and conditions must be approved by the Chair of the Finance Committee or his/her designee, or the Director for loans of $250,000 or less. Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092 & OL Ch 71 2018 History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0060 Loan Conditions of the Oregon Royalty Loan Program The Department may approve a loan request if it finds that: (1) The proposed Business Development Project is feasible and a reasonable risk from practical and economic standpoints, the Applicant demonstrates readiness for market, and the loan has a reasonable prospect of repayment. (2) The applicant can provide good and sufficient collateral for the loan and personal and/or corporate guarantees, or a combination of the preceding items, that are adequate relative to the risks and potential returns, and the applicant's financial resources are adequate to ensure success of the project, all as determined by the Department at its sole discretion. Collateral value will be determined at the sole discretion of the Department. A lack of sufficient collateral or a lack of guarantor support may result in a higher return requirement to offset the higher risk associated with either not having sufficient collateral and or guarantor support. (3) The Applicant demonstrates to the Department’s satisfaction a reasonable potential for strong gross profit margin and rapid sales growth that may support economic diversification in the state or the region in which the business is conducted, increase employment opportunities or retain existing jobs in the state or region, or increase the competitiveness of the Applicant’s business in the Traded Sector. (4) While an ORL may fund up to 100% of the Business Development Project, preference may be given to Business Development Projects that include funding sources other than the ORL. (5) Any loans approved by the Department utilizing SSBCI Funds must demonstrate a minimum 1:1 match of private equity raised as a result of the ORL for the project. Utilization of SSBCI Funds in a project to fund a loan are made at the sole discretion of the Department and all loans greater than $250,000 will be required to use SSBCI Funds unless otherwise waived by the Department. (6) Monies in the Fund are or will be available for the proposed business development project. (7) The applicant and Qualified Business must be in compliance with, and remain compliant with all local, state and federal laws and regulations. (8) The applicant, borrower, guarantors and principal owners are current on all obligations to the State of Oregon. (9) The applicant can show the ability to repay an amount typically up to 2X of the loan amount over a three (3) to five (5) year period. (10) The applicant can demonstrate existing reoccurring sales to repay the loan. Statutory/Other Authority: ORS 285B.092, ORS 285A.060, ORS 285A.070 & ORS 285B.130 & ORS 285B.133 Statutes/Other Implemented: ORS 285B.092, ORS 285A.060, ORS 285A.070 & ORS 285B.130 & ORS 285B.133 History: OBDD 25-2023, amend filed 10/04/2023, effective 10/04/2023 OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 13-2019, amend filed 09/04/2019, effective 09/04/2019 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0065 Loan Conditions of the Oregon Angel Loan Program The Department may approve a loan request if it finds that: (1) The proposed business development project is feasible and a reasonable risk from practical and economic standpoints, the applicant demonstrates readiness for market, and the loan has reasonable prospect of repayment. (2) The applicant can provide sufficient collateral for the loan and personal and/or corporate guarantees, or a combination of the preceding items, that are adequate relative to the risks and potential returns, and the applicant's financial resources are adequate to ensure success of the project, all as determined by the Department at its sole discretion. Collateral value will be determined at the sole discretion of the Department. A lack of sufficient collateral or a lack of guarantor support may result in a higher return requirement to offset the higher risk associated with either not having sufficient collateral and or guarantor support. (3) The applicant demonstrates to the satisfaction of the Department a reasonable potential for strong gross profit margin and sales growth that may support economic diversification in the state or the region in which the business is conducted, increase employment opportunities or retain existing jobs in the state or region, or increase the competitiveness of the applicant business in the traded sector. (4) While an OAL may fund up to 100% of the business development project, preference may be given to business development projects that include funding sources other than the OAL. (5) Any loans approved by the Department utilizing SSBCI Funds must demonstrate a minimum 1:1 match of private equity raised as a result of the OAL for the project. The Department may require additional private match as a condition of approval at its sole discretion. Utilization of SSBCI Funds in a project to fund a loan are made at the sole discretion of the Department and all loans greater than $250,000 will be required to use SSBCI Funds unless otherwise waived by the Department. (6) Monies in the Fund are or will be available for the proposed business development project. (7) The applicant and Qualified Business must be in compliance with, and remain compliant with, all local, state and federal laws and regulations. (8) The applicant, borrower, guarantors and principal owners are current on all obligations to the State of Oregon. (9) The applicant can demonstrate existing reoccurring sales to repay the loan. Statutory/Other Authority: ORS 285B.092, ORS 285A.060, ORSA.070 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092, ORS 285A.060, ORSA.070 & OL Ch 71 2018 History: OBDD 25-2023, adopt filed 10/04/2023, effective 10/04/2023 OBDD 6-2023, temporary adopt filed 04/12/2023, effective 04/12/2023 through 10/08/2023
123-092-0070 Loan Agreement for an Oregon Royalty Loan (1) If the Finance Committee approves a loan, the Department and the borrower may enter into a loan contract that, among other matters: (a) shall set forth a plan for repayment by the borrower to the Oregon Royalty Fund moneys borrowed through the Oregon Royalty Loan Program, along with royalties calculated as a percentage of the borrower’s sales or revenue as a means of effecting an adequate rate of return typically up to 2X on the monies loaned, as determined at the sole discretion of the Finance Committee, and: (A) based on loan pricing and total repayment costs, ORL financing for the project does not directly compete with traditional commercial lending sources, (B) is commensurate with the level of risk taken when making the loan and are anticipated to cover operational expenses and losses incurred by the ORF. (b) Shall set forth a schedule of or conditions triggering payments and the period of the loan, which shall not exceed 61 months from the date of the loan contract. (c) Shall provide that the liability of the State under the contract is contingent upon the availability of moneys in the Oregon Royalty Fund for use in the business development project. (d) Shall require that the borrower is responsible for payment of, separate and above any other amounts owed on the loan: (A) Insurance premiums as needed to maintain in full force life insurance and other types of insurance in an amount and coverage that is acceptable to the Finance Committee. (B) Out-of-pocket costs associated with the loan closing which may include but are not limited to filing fees, recording fees, title insurance, appraisals, and attorney fees. (e) That the borrower will provide to the Department on a periodic basis, such financial statements as the Department may require. (f) Shall provide that the applicant, borrower, guarantors, and principal owners are in compliance with and agrees to abide by all federal, state, and local laws and regulations. (g) Shall specify any additional payment from the borrower as the Finance Committee may require for other circumstances, such as if the borrower elects to repay the loan before the originally approved term, if the borrower is acquired or experiences a significant change in ownership, or to achieve a specified repayment amount or rate of return. (h) At a Liquidity Event, the full repayment amount as agreed upon will be due in full. (2) The Department, at its sole discretion, may require the execution of a Commitment Letter and receipt of a non-refundable Commitment Fee to secure resources necessary to fund the loan. The Commitment Fee will be applied at closing to the Loan Fee. If the loan does not close, the Commitment Fee will not be refunded. Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: ORS 285B.092 & OL Ch 71 2018 History: OBDD 25-2023, amend filed 10/04/2023, effective 10/04/2023 OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 13-2019, adopt filed 09/04/2019, effective 09/04/2019
123-092-0080 Servicing, Amendments and Modifications (1) All loans shall be monitored by, and all loan repayments shall be made to, the Department. (2) It is the responsibility of the borrower to ensure that the Department receives its payment by the due date. (3) Any request for modification or amendment to any loan condition including extension of payments shall be made in writing to the Department and approved or declined by the Chair of the Finance Committee, or the Director for loans with a principal balance of $250,000 or less. Statutory/Other Authority: ORS 285B.092 & OL Ch 71 2018 Statutes/Other Implemented: OL Ch 71 2018 History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 9-2019, minor correction filed 07/10/2019, effective 07/10/2019 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019
123-092-0090 Fees and Charges (1) The Department shall charge and collect a non-refundable Application Fee of $500 at the time the application is submitted. If the loan is declined or does not close, the Application Fee will not be refunded. (2) The Department may charge and collect a Commitment Fee in an amount up to one percent (1%) of the approved principal amount of the loan. The Commitment Fee will be applied at closing of the loan to the Loan Fee specified in section (3) of this rule. If the loan does not close, the Commitment Fee will not be refunded. (3) The applicant, immediately upon the loan closing, shall pay to the Department a Loan Fee of one and one-half percent (1.5%) of the approved amount of the loan. The amount collected by the Department will be reduced by the amount of the Commitment Fee collected as provided for in section (2) of this rule. If the full amount of the loan is not disbursed, the Loan Fee will not be refunded. (4) The Department may charge and collect a non-refundable Modification Fee of up to $500 at the time that it receives a loan modification request. A loan modification may include, but, is not limited to, modification to terms of repayment, subordination requests, or changes to the collateral or the guarantees. In addition the borrower will be responsible for payment of, separate and above any other amounts owed on the loan, closing costs associated with the modification including, but not limited to, document preparation, review of documentation for legal sufficiency, title, and escrow, recording or filing fees. (5) Monies referred to in (1), (2), (3) and (4) of this rule, not including closing costs, shall be paid into the Fund. (6) The Department may, in its sole discretion, use some or all of the money collected under section (3) of this rule, as payment to a contracted Local Development Group for referring projects for financing, packaging the loans, processing applications, investigating proposed business development projects and servicing outstanding loans. In no case shall the Department make any payment of more than one percent (1%) of the loan principal amount for any one project. In no case shall the Department make any payment under this section until the loan has been closed and the Department has collected in full the fee specified in section (3) of this rule. Statutory/Other Authority: ORS 285B.092, ORS 285A.075, OL Ch 71 2018 & ORS 285A.200(3) Statutes/Other Implemented: ORS 285A.075, OL Ch 71 2018 & ORS 285A.200(3) History: OBDD 6-2023, temporary amend filed 04/12/2023, effective 04/12/2023 through 10/08/2023 OBDD 4-2020, amend filed 04/03/2020, effective 04/03/2020 OBDD 13-2019, amend filed 09/04/2019, effective 09/04/2019 OBDD 2-2019, adopt filed 01/07/2019, effective 01/07/2019