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Oregon is a great place to do business. It offers plenty of small business financing options, business-friendly tax policies, and incentives for small business owners, such as the Oregon Investment Advantage.
This program encourages both small and medium businesses to either start or relocate to certain counties in the state. If you have as few as five full-time employees and do business in one of these counties, your business can deduct or potentially even eliminate its state business income tax liability for up to 8 years.
Another great incentive is the Oregon New Market Tax Credit (NMTC), which allows Oregon business owners to obtain below market-rate investment options in order to revitalize low-income communities. If your business qualifies for an NMTC, you can receive a 39% tax credit of the total qualified investment spread over seven years. These two programs show that Oregon is dedicated to attracting—and retaining—small businesses in the state.
In addition, Oregon has been named one of the top 10 states in the country for business taxes. According to the Tax Foundation, Oregon achieved the number 10 spot (which it has held since 2014) for two reasons. First, it does not have sales tax on most items. Second, it allows corporate net operating losses to be carried forward for up to 15 years without a cap. Both of these policies allow businesses to decrease their tax liability and increase their profitability.
There are lots of great reasons to either start a new business or expand an existing business in Oregon. But obtaining small business financing in Oregon can be tricky, particularly if you are just starting out as a new business owner. Fortunately, there are options for small business owners, including small business loans, small business grants, and investors.
On this page:
Small Business Loans in Oregon
For some business owners, particularly those with a more established company, Oregon small business loans can be a great way to obtain financing. There are a number of lenders in Oregon who offer loans to small businesses.
Here are some online small business lenders:
As low as 6.00%
$5,000 – $2 million
1 – 5 years
The above information is for the Lendio Business Term Loan.
Lendio is the largest small business loan marketplace in the U.S. with a network of over 300+ lenders. These lenders include PayPal, Bank of America, American Express, and more.
You can apply with one simple application without impacting your credit. The application process can be completed online in 15 minutes with no fee or obligation. If approved, funds can be made available in as little as 24 hours.
- Short term loan
- Business term loan
- Business line of credit
- Merchant cash advance
- Business credit card
- Equipment financing
- Commercial mortgage
- Startup loan
- SBA loans
- Accounts receivable financing
- Business acquisition loan
9.77% – 35.98%
$5,000 – $500,000
6 – 60 months
The information above is for the LendingClub Business Term Loan.
LendingClub is a peer-to-peer lender that connects investors with businesses in need of financing. To be eligible, businesses must have at least $50,000 in annual sales, as well as been in business for 12 months or more.
You can apply online in under 5 minutes and receive multiple quotes. If you decide to pay off your loan early, there are no prepayment fees to worry about.
7.00% – 69.00%
$500 – $250,000
6, 12, or 18 months
The information above is for the Kabbage Business Line of Credit.
Kabbage is a small business lender offering a business line of credit. The lender has a low minimum loan amount which can make it a good option for those in need of a small amount of financing.
In order to be eligible, your business needs to be at least 12 months old, with $50,000 in annual revenue.
Small Business Grants in Oregon
For some, small business grants in Oregon may be available through the University of Oregon. The RAIN @ UO program connects business leaders with student innovators and entrepreneurs. RAIN (Regional Accelerator and Innovation Network) not only provides resources such as seminars and mentorship for student entrepreneurs, but it also offers the possibility of grant money. The RAINMaker Seed Grant and the Spark Grant both offer the opportunity for student entrepreneurs to get a head start on their business plan with funding.
The RAINMaker Seed Grant is a $5,000 award that can be used for any number of expenses, including paying for prototype designs, funding infrastructure, or conducting other activities to bring an idea to fruition. The Spark Grant is a $500 award that allows students to further study the feasibility of a particular venture so that they can make an informed decision about the project.
Small Business Investors in Oregon
Angel investors are well-off individuals or collections of individuals who provide start-up capital to entrepreneurs, typically in exchange for part ownership of the business. In addition, angel investors usually offer invaluable business advice to help get businesses off the ground.
Here are some small business investors in Oregon:
Oregon Angel Fund
Oregon Angel Fund is a venture capital fund that works to help grow local businesses using their subject matter expertise. The group consists of 180 investors from a diverse array of industries. They offer pre-funding assistance to help entrepreneurs get ready for funding eligibility, as well as ongoing support if they choose to fund a company. Oregon Angel Fund invests in four to seven companies each year in amounts ranging from $100,000 to $2,000,000. They invest in businesses in Oregon or Southwest Washington. Applications are accepted through gust.com or by contacting Oregon Angel Fund directly.
Portland Seed Fund
Portland Seed Fund was founded in 2011 with a focus on inclusivity in both funding and hiring. They work with entrepreneurs in any sector and are focused more on the potential for exceptional growth. They have a particular interest in products and services that are either in or peripheral to Oregon’s target economic sectors, including clean technology, high technology, health technology, apparel, food, and forestry and wood products. Their initial investments are usually small—around $50,000. From there, they may participate in follow-up financing rounds or connect companies with partners. They also connect companies with a network of experts, from lawyers to real estate brokers. Portland Seed Fund works with entrepreneurs in Portland and the Pacific Northwest. Applications can be submitted via the website.
Southern Oregon Angel Investors
Southern Oregon Angel Investors is a nonprofit organization located in Medford, Oregon. Its goal is to connect start-up ventures and existing companies with the capital that they need to grow or expand. Southern Oregon Angel Investors typically invest between $50,000 and $300,000. They are looking for local companies and start-ups who have the potential for scalable growth. In addition to providing funding, Southern Oregon Angel Investors offers advice and connections to its companies. Applications can be submitted via its website.
Cascade Angels is based in Central Oregon. Its mission is to create opportunities for both investors and businesses in Oregon to drive economic growth and increase prosperity. Cascade Angels is primarily focused on investing in Oregon and has invested close to $3,000,000 to date. A typical investment ranges from $100,000 to $250,000 but may be as high as $1,500,000. Businesses and start-ups in any industry are encouraged to apply at the seed and launch stage if they offer the potential for a healthy return. Applications can be submitted through gust.com.
TiE Global (The Indus Entrepreneurs) was founded in 1992 in Silicon Valley. It is a nonprofit venture devoted to entrepreneurship. It offers education, mentorship, networking, and funding. It currently has over 11,000 members worldwide in 60 chapters. It has funded 10,000 start-ups. Entrepreneurs can join TiE through its website. From there, they can submit an application to be considered for funding.
With a number of innovative funding opportunities and an advantageous tax climate, entrepreneurs in Oregon have a unique opportunity to start or expand a business. If you are considering either opening up a business or expanding your current business, Oregon may be an ideal choice.
Author: Jeff Gitlen