Or. Admin. R. 123-092-0020
Current through Register Vol. 63, No. 8, August 1, 2024
Section 123-092-0020 - DefinitionsFor the purpose of these rules additional definitions may be found in Procedural Rules, OAR 123-001-0050. For purposes of this division of administrative rules, unless the context requires otherwise:
(1) "Applicant" means any person or any combination of persons applying for a loan from the Oregon Royalty Fund through the Oregon Royalty Loan Program or the Oregon Angel Loan Program.(2)(a) "Business Development Project" means the use of working capital or the acquisition, engineering, improvement, rehabilitation, construction, operation or maintenance of any property, whether real or personal, by an Oregon Growth Business to support its growth.(b) Specifically excluded from the definition of Business Development Project is any use of funds for: (B) expenditure for personal purposes, including the refinancing of personal debt or debt not otherwise incurred for business purposes.(3) "Exit" refers to any liquidity event, including a merger, acquisition, buyout, additional outside debt financing or any type of change in management control.(4) "Exit Fee" means an amount that is typically between 2 to 2.5 times the amount of the loan that is to be paid to the Oregon Business Development Department at the time of an "Exit". The amount is based on the due diligence performed on the company, project and the associated risk. Due diligence will include factors including, but not limited to, the current recurring sales, proformas and assumptions, amount of equity commitments, qualifications of the management team, term of the loan, value of collateral available and pledged as security, the availability and strength of personal guarantees.(5) "Finance Committee" means the Finance Committee whose members are appointed by the Chair of the Oregon Business Development Commission as outlined in OAR 123-001-0520. Regarding the approval, setup, documentation, or issuance of a new loan from the ORF in a principal amount of $250,000 or less, "Finance Committee" means the Director of the Oregon Business Development Department or the Director's designee. The Department shall submit to the Finance Committee all loans greater than $250,000, or otherwise referred to the Finance Committee at the sole discretion of the Department, for a credit decision.(6) "Liquidity Event" includes a merger, acquisition, buyout, additional outside debt financing, prepayment or any type of change in management control or ownership(7) "Local Development Group" as used in OAR 123-092-0090, means any contracted group based in Oregon that is either a: (a) public or private corporation that has as one of its primary purposes, as stated in its articles of incorporation, charter or bylaws, the promotion of economic development in any part of the State of Oregon; or(b) an angel or venture fund/ investor; or(c) a local or regional business incubator or accelerator that, in the sole discretion of the Department, targets early stage, high-growth oriented, Traded Sector companies.(8) "Oregon Growth Business" means an Oregon business with 50 or fewer full-time-equivalent employees that is in the traded sector or that primarily supports traded sector industries.(9) "Oregon Royalty Fund" or "Fund" or "ORF" means the Small Business Expansion Loan Fund established in 2018 c.71.(10) "Oregon Angel Loan Program" or "OAL" means a loan made subject to the terms and conditions of the Oregon Angel Loan Program in OAR 123-092-0065.(11) "Oregon Royalty Loan Program" or "ORL" means a loan made subject to the terms and conditions of the Oregon Royalty Loan Program in OAR 123-092-0060.(12) "Person" means any individual, association of individuals, joint venture, partnership, limited liability company or corporation.(13) "Royalty" means payments calculated as a percentage of the borrower's sales or revenue as a means of effecting an adequate rate of return typically up to 2X on the monies loaned, as determined at the sole discretion of the Department.(14) "SSBCI Funds" means U.S. Treasury funds allocated to the Department through the State Small Business Credit Initiative Program (SSBCI Program) administered by the United States Department of the Treasury. Links to the SSBCI Capital Program Policy Guidelines and Frequently Asked Questions may be found under Program Rules and Materials at the following hyperlink: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci. The Department, at its sole discretion, will determine the source of funding and all loans approved utilizing SSBCI Funds shall be subject to additional terms, conditions and requirements of the SSBCI Program.(15) "Total Repayment" means repayment of all outstanding principal, interest, Exit Fee and/or Royalty payments.(16) "Traded sector" has the meaning given that term in ORS 285A.010.(17) "Traded sector activities" means activities that produce goods or services for the traded sector.Or. Admin. R. 123-092-0020
OBDD 2-2019, adopt filed 01/07/2019, effective 1/7/2019; OBDD 13-2019, amend filed 09/04/2019, effective 9/4/2019; OBDD 6-2023, temporary amend filed 04/12/2023, effective 4/12/2023through 10/8/2023; OBDD 25-2023, amend filed 10/04/2023, effective 10/4/2023Statutory/Other Authority: ORS 285B.092 & ORS 285B.130 & ORS 285B.133
Statutes/Other Implemented: ORS 285B.092 & ORS 285B.130 & ORS 285B.133