OAR 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.