Or. Admin. Code § 123-019-0010

Current through Register Vol. 64, No. 1, January 1, 2025

Section 123-019-0010 - [Effective 5/31/2025] 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 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 State of 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 any loan committee selected by the Finance Manager from the Finance Committee or otherwise appointed by the Finance Manager. The Loan Committee shall consist of at least three members, and the Finance Manager shall select one of its members to be chair. The Loan Committee shall meet at the call of the chair. Two members of the Loan Committee shall constitute a quorum to transact the business of the Loan Committee.

(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 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 secure collateral for the loan or improve the collateral coverage; and,

(C) Is a minor part of the new loan.

(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.

Or. Admin. Code § 123-019-0010

EDD 16-1991(Temp), f. & cert. ef. 11-8-91; EDD 12-1992, f. & cert. ef. 8-26-92; EDD 7-1993(Temp), f. & cert. ef. 9-17-93; EDD 3-1994, f. 2-4-94, cert. ef. 2-7-94; EDD 8-1995, f. & cert. ef. 10-26-95; EDD 23-2008, f. 7-31-08, cert. ef. 8-1-08; OBDD 10-2010(Temp), f. & cert. ef. 4-12-10 thru 10-9-10; OBDD 34-2010, f. & cert. ef. 10-1-10; OBDD 35-2010, f. 10-14-10, cert. ef. 10-15-10; OBDD 12-2014, f. 6-30-14, cert. ef. 7-1-14; OBDD 2-2021, temporary amend filed 01/19/2021, effective 1/19/2021 through 7/9/2021; OBDD 7-2021, amend filed 07/02/2021, effective 7/2/2021; OBDD 4-2022, temporary amend filed 03/09/2022, effective 03/09/2022 through 09/02/2022; OBDD 1-2023, amend filed 01/18/2023, effective 1/18/2023; OBDD 53-2024, temporary amend filed 12/03/2024, effective 12/3/2024 through 5/31/2025

Statutory/Other Authority: ORS 285A.075 & OL 2020 2nd SS Ch 10 Sec 26 and 27

Statutes/Other Implemented: Ch. 688, OL 1991, Ch. 765, OL 1993, OL 2020 2nd SS Ch 10 Sec 26 and 27, ORS 285 B 740, ORS 285 B 743, ORS 285 B 746, ORS 285 B 749 & ORS 285 B 758