Bill > HB2862

This bill establishes the Local Markets Small Business Capital Loan Program administered by the Oregon Business Development Department to provide interest-only loans to small businesses with 50 or fewer employees, designed to incentivize job creation. The program allows businesses to apply for loans ranging from $10,000 to $30,000 based on their commitment to hiring and retaining full-time employees for at least two years: $10,000 for one employee, $20,000 for two employees, and $30,000 for three employees. If a business meets its employment commitment for the full two-year period, the loan principal will be forgiven, and only interest payments will continue. However, if a business fails to meet its employment requirements, it must immediately repay all missed principal payments plus a 10% penalty, with the loan converting to a standard amortizing loan. The bill also creates the Local Markets Small Business Capital Loan Fund, which will be funded through various sources including fees, loan payments, legislative appropriations, and potential gifts or donations. The fund will be used to make loans and cover administrative costs of the program. The Oregon Business Development Department will have the authority to establish rules, charge application and processing fees, and determine loan eligibility based on specific criteria such as the business's employee count, employment commitment, and ability to repay.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2862