PDC Small Business Programs, Fred Atiemo, Portland Development Commission. Track 1, Presentation 4

1. PDC Small Business Program
S ll B i P
Fred Atiemo
Portland Development Commission
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2. PDC Business Finance Program
Urban Renewal Area
Area Specific Programs
City-Wide Programs
Programs
EDA Hatfield QJP
NEF EOF
EDGLF DTIF
Start-Up
Start-Ups Start-Up
Business Retention & Expansion
Business Retention & Expansion Business Retention & Expansion
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Neighborhood Revitalization
N i hb h d R it li ti
(Working Capital, Equipment Neighborhood Revitalization
Purchase, etc.) Real Estate Development
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3. Business Finance Objectives
“Gap Financing” Through:
Gap Financing
Job Creation
Wealth Creation
Neighborhood Revitalization
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4. Quality Jobs Program
A flexible loan program designed to stimulate investment
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and quality job growth.
Capital Investment – Physical improvements to the
property within the Urban Renewal.
Business must pay a minimum of 2x Oregon’s minimum
Oregon s
wage.
75% of revenues must be business-to-business (Waived
business-to-business.
for small businesses; award reduced by 50%).
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5. Economic Opportunity Fund
Incentive funds (grant) to stimulate private investment of
physical development of commercial buildings in URAURA.
75% of revenues must be business-to-business.
business-to-
(Waived for small businesses; award reduced by 50%).
No retail or speculative commercial development; must
occupy at least 75% of building.
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Maximum Economic Opportunity Fund $100,000.
Grant
G t amount cannot exceed the QJP or DTIF loan.
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6. DTIF Loan Program
Used only for physical improvements.
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Max loan: $1 million.
Repayment: Interest
only for first 2 years.
One job for every
$25,000 loaned.
Owner user.
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7. Hatfield Loan Program
For small business in the inner N/NE neighborhoods –
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(Burnside to Columbia; 42nd to Greeley).
Maximum loan amount: $500,000
One job for every $25,000 loaned.
Eligible for working capital, equipment purchase, real
estate purchase, and bank loan guarantee.
Borrower must occupy at least 75% of space.
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8. E D A Loan Program
Citywide program designed to assist small businesses.
Maximum loan amount: $150,000 ($250,000 for R/E).
One job for every $25,000 loaned.
Eligible for working capital, equipment purchase, and
real estate acquisition.
Borrower must occupy at least 75% of space
space.
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9. Economic Development General Loan Fund
Citywide program designed to spur business
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development in distressed neighborhoods.
Maximum loan amount: $300,000.
$300 000
One job for every $25,000 loaned.
Eligible for working capital, equipment purchase, and
real estate acquisition.
Borrower must occupy at least 75% of space.
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10. Near Equity Fund
Citywide program - hybrid between equity and debt.
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Business must be existing for at least 2 years.
Designed for businesses with 20 or less employees.
Maximum l
Mi loan amount: $50 000
t $50,000.
Designed for working capital and equipment purchase.
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11. Loan Rating
Hard Rating:
Business Management Experience
Industry Experience
Repayment Ability
Credit / Character
Collateral
Soft Rating:
Leverage of PDC Dollars
Business Conditions
Other Public Benefits
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12. Business Finance Program
FY 2000 th
through 2007
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Number of businesses assisted: 327
Total resources deployed: $67 million
Percentage to small business: 85% (approx.)
Total private dollars attracted: $390 million
Number of jobs projected: 12,000 (approx.)
(8/15/07)
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