123-019-0010 Definitions For the purposes of these rules additional definitions may be found in Procedural Rules, OAR 123-001. For purposes of this division of administrative rules, unless the context demands otherwise: (1) "Applicant" means any individual, association of individuals, joint venture, partnership or corporation, person or any combination of persons applying for a loan from the Oregon Entrepreneurial Development Loan Fund. (2) “Business plan” means a plan: (a) For start-up entities, including but not limited to businesses with less than 24 months of operations, using the standard format set forth in Your Business Plan by Dennis J. Sargent or other such format as may be acceptable to the Certified Entity and the Department, or, (b) For businesses with 24 or more months of operations an executive summary of business operations including projections and supporting narrative as may be acceptable to the Certified Entity or the Department. (3) "Certified Entity" means any entity certified by the Finance Manager of the Oregon Business Development Department under OAR 123-019-0100 including Small Business Development Centers (SBDCs). (4) "Collateral coverage ratio” means the number of times that the collateral could repay the loan principal. The ratio is usually expressed as “X:1” (or “X to 1”), where “X” is the collateral liquidation value (the net funds expected to be received from the sale of collateral, after expenses) divided by the amount of the loan. (5) “Department” means the Oregon Business Development Department as established under ORS 285A.070. (6) "Equity" means cash and real and personal property that is owned or controlled by an Applicant and committed to use in the project for which a loan from the Fund is being sought. Property other than cash will be conservatively valued by the Department. (7) “Finance Manager” means the individual delegated authority by the Director of the Oregon Business Development Department to administer the Fund and make credit decisions on behalf of the Department. (8) "Fund" or "EDLF" means the Oregon Entrepreneurial Development Loan Fund as defined and set forth in Section 13, Chapter 688, Oregon Laws 1991. (9) "Loan Committee" means the Finance Committee of the Business Oregon Commission. (10) “Loan to value” or “LTV” means the amount of the loan, expressed as a percentage of the value of the collateral. The formula is the loan amount divided by the value of the subject collateral. (11) “Local Lender” means a non-depository small business lender that has a physical location in Oregon and that: (a) Is certified as a community development financial institution by the Community Development Financial Institutions Fund at the United States Department of the Treasury; (b) Is a nonprofit corporation as defined in ORS 307.130; (c) Is an economic development district in Oregon designated by the Economic Development Administration of the United States Department of Commerce; (d) Is affiliated with a local government as defined in ORS 174.116; or, (e) Is affiliated with a tribal government as defined by ORS 294.805. (12) “Principal” in regard to an Applicant is defined as: (a) If a sole proprietorship, the proprietor; (b) If a partnership, each managing partner and each partner who is a natural person and holds a 20% or more ownership interest in the partnership; (c) If a corporation, limited liability company, association, cooperative or a development company, each director, each of the executives or officers of the entity, and each natural person who is a direct or indirect holder of 20% or more ownership stock or stock equivalent of the entity (13) "Project" means the acquisition, improvement, rehabilitation, construction, operation or maintenance of any property, real or personal, that is or will be used or is suitable for use by an economic enterprise, but not including: (a) A loan for the purchase or construction of residential housing; (b) A loan for the purchase of property that will not be used for the business operation of the Applicant, or is a passive real property investment not used to house the operations of a related company; (c) A loan for the sole purpose of refinancing of an existing loan unless the following criteria, at the sole discretion of the Department, are satisfied: (A) Such existing loan was exclusively for a business purpose; (B) The refinance is necessary to retain jobs or support continuance of the business operation; and, (C) Can demonstrate to the Department that the Applicant has been denied credit twice for the same purpose as the Project by Local Lenders or Financial Institutions, as defined in ORS 706.008. (14) "Severely Disabled" means: (a) An individual or individuals certified as severely disabled by the Vocational Rehabilitation Division of the Department of Human Resources or the Commission for the Blind; or, (b) A veteran who has a United States Department of Veterans Affairs total disability rating of at least 70 percent as a result of an injury or illness that the veteran incurred, or that was aggravated, during active military service and received a discharge or release under other than dishonorable conditions. (15) "Small Business Development Center" or "SBDC" means any small business development center described in the Small Business Training Assistance Act of 1983. (16) "Small Business Management Program" means any of the following: (a) A going into business class; (b) A Small Business Management Program offered by an Oregon SBDC; or, (c) Any series of classes/seminars/workshops/counseling sessions offered by a Certified Entity that meet the approval of the Finance Manager. Statutory/Other Authority: ORS 285A.075 & ORS 285B.758 Statutes/Other Implemented: Ch. 765, OL 1993, ORS 285B.740, ORS 285B.743, ORS 285B.746, ORS 285B.749 & ORS 285B.758 History: OBDD 4-2025, amend filed 05/19/2025, effective 05/19/2025 OBDD 53-2024, temporary amend filed 12/03/2024, effective 12/03/2024 through 05/31/2025 OBDD 1-2023, amend filed 01/18/2023, effective 01/18/2023 OBDD 4-2022, temporary amend filed 03/09/2022, effective 03/09/2022 through 09/02/2022 OBDD 7-2021, amend filed 07/02/2021, effective 07/02/2021 OBDD 2-2021, temporary amend filed 01/19/2021, effective 01/19/2021 through 07/09/2021 OBDD 12-2014, f. 6-30-14, cert. ef. 7-1-14 OBDD 35-2010, f. 10-14-10, cert. ef. 10-15-10 OBDD 34-2010, f. & cert. ef. 10-1-10 OBDD 10-2010(Temp), f. & cert. ef. 4-12-10 thru 10-9-10 EDD 23-2008, f. 7-31-08, cert. ef. 8-1-08 EDD 8-1995, f. & cert. ef. 10-26-95 EDD 3-1994, f. 2-4-94, cert. ef. 2-7-94 EDD 7-1993(Temp), f. & cert. ef. 9-17-93 EDD 12-1992, f. & cert. ef. 8-26-92 EDD 16-1991(Temp), f. & cert. ef. 11-8-91