May 15, 2012
Federal funding from the State Small Business Credit Initiative (SSBCI) program, initiated by the U.S. Congress in 2010 and administered by Business Oregon, has begun to help Oregon companies retain existing workers and create new jobs.
Congress made $1.5 billion in federal funding available to states through SSBCI. The funds will be deployed nationally to address access to capital issues limiting small business growth. The U.S. Treasury allowed each state to identify how they could best distribute the funds to meet the program objectives and requirements. Oregon's share of the funding over a four-year period is expected to be $16.5 million.
"Oregon is a small business state and improving access to capital for small business is critical to the future success of our economy," said Governor John Kitzhaber at the time of the federal announcement. "These awards will mean Oregon's small business can retain employees and create new jobs for Oregonians."
The SSBCI funds, managed by Business Oregon, are being disbursed through existing Business Oregon finance programs. These programs have years of proven success growing Oregon small businesses through direct loans, participating in loan loss reserves programs, or issuing loan guarantees to financial institutions.
Some recent examples of Business Oregon's dispersal of SSBCI funds include Professional Underground Services, Inc. and Dynasty Concrete Company, both of Eugene.
Professional Underground Services was started by Matthew Powell and Tony Lusk in 2003. The company provides excavation, trenching, and directional drilling services to public utilities and private companies. The company specializes in directional drilling - pushing line through earth horizontally rather than laying pipe in a trench.
Business Oregon Finance Officer Terry Hegle helped the company with a $50,000 CAP loan and a $90,000 CEF loan guarantee on a $250,000 loan from Century Bank. The assistance will help the company create 10 new jobs, while retaining 10 other full-time employees. Both financing tools were funded with SSBCI funds.
Dynasty Concrete Company has been in business since 2009 and delivers concrete to job sites. They also perform construction site prep work including excavating, grading, setting up concrete footing forms, and pouring concrete.
Dynasty received an 80% guarantee on a $100,000 term loan, and a 54 percent guarantee on a $150,000 line of credit, both offered through the CEF program. The company currently employs 23 workers and expects to add 11 new jobs as a result of the assistance.
The Oregon Capital Access (CAP) Program helps lenders (banks and credit unions) make more commercial loans to small businesses and provides capital for start-up or expansion. The program is designed for non-profit and for-profit businesses seeking funds for most business purposes. The Oregon Credit Enhancement Fund (CEF) is a loan insurance program available to lenders to assist businesses in obtaining access to capital. Information on all of Business Oregon's financing tools can be at http://www.oregon4biz.com.
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