Gov. Kate Brown signed a bill to boost access to capital for entrepreneurs who don’t yet qualify for traditional bank lending. The changes went into effect immediately.
The bill, House Bill 4015, was backed by several business groups including the influential Oregon Business and Industry. Brown signed the bill March 2.
The bill made critical changes to the Entrepreneurial Development Load Fund, a program administered by Business Oregon, the state’s economic development arm. The loan fund now has a maximum loan amount of $1 million, up from a previous cap of $100,000.
The bill also increased the maximum annual revenue limit for load eligibility from $500,000 to $1.5 million. It also directed the state to adjust the maximum loan and revenue amounts in line with changes to the Consumer Price Index. It also added company size — fewer than 25 employees — to be used as an alternative requirement for eligibility.
The bill addresses access to capital barriers that are often acute for entrepreneurs who lack the revenue, balance sheets or track record needed for traditional bank lending. That challenge is even larger for entrepreneurs and small business owners who are from marginalized communities. This is a topic the business journal has covered extensively.
