apnba june 2008 conference atiemo

PDC S ll B i PPDC S ll B i PPDC Small Business ProgramPDC Small Business Program

Fred AtiemoFred AtiemoPortland Development CommissionPortland Development Commission

APNBA Business District Association Conference – June, 2008 1

PDC Business Finance ProgramPDC Business Finance ProgramPDC Business Finance Program PDC Business Finance Program

City-Wide Programs Urban Renewal Area ProgramsArea Specific Programs

EDA NEF EDGLF QJP EOF DTIFHatfield

Start-UpsBusiness Retention & Expansion

Start-UpBusiness Retention & Expansion

N i hb h d R it li ti

Start-Up Business Retention & Expansion

(Working Capital, Equipment Purchase, etc.)

Neighborhood RevitalizationReal Estate Development

pNeighborhood Revitalization


Business Finance ObjectivesBusiness Finance ObjectivesBusiness Finance Objectives Business Finance Objectives

“Gap Financing” Through:“Gap Financing” Through:Gap Financing Through:Gap Financing Through:

Job CreationJob Creation

Wealth CreationWealth Creation

Neighborhood RevitalizationNeighborhood Revitalization


Quality Jobs ProgramQuality Jobs ProgramQuality Jobs Program Quality Jobs Program

A flexible loan program designed to stimulate investment A flexible loan program designed to stimulate investment p g gp g gand quality job growth.and quality job growth.

Capital InvestmentCapital Investment –– Physical improvements to thePhysical improvements to theCapital Investment Capital Investment Physical improvements to the Physical improvements to the property within the Urban Renewal.property within the Urban Renewal.

Business must pay a minimum of 2x Oregon’s minimumBusiness must pay a minimum of 2x Oregon’s minimumBusiness must pay a minimum of 2x Oregon s minimum Business must pay a minimum of 2x Oregon s minimum wage.wage.

75% of revenues must be business75% of revenues must be business toto business (Waivedbusiness (Waived75% of revenues must be business75% of revenues must be business--toto--business. (Waived business. (Waived for small businesses; award reduced by 50%).for small businesses; award reduced by 50%).


Economic Opportunity FundEconomic Opportunity FundEconomic Opportunity Fund Economic Opportunity Fund Incentive funds (grant) to stimulate private investment of Incentive funds (grant) to stimulate private investment of physical development of commercial buildings in URAphysical development of commercial buildings in URAphysical development of commercial buildings in URA.physical development of commercial buildings in URA.

75% of revenues must be business75% of revenues must be business--toto--business. business. (Waived for small businesses; award reduced by 50%).(Waived for small businesses; award reduced by 50%).(Waived for small businesses; award reduced by 50%).(Waived for small businesses; award reduced by 50%).

No retail or speculative commercial development; must No retail or speculative commercial development; must occupy at least 75% of building.occupy at least 75% of building.py gpy g

Maximum Economic Opportunity Fund $100,000.Maximum Economic Opportunity Fund $100,000.

G t t t d th QJP DTIF lG t t t d th QJP DTIF lGrant amount cannot exceed the QJP or DTIF loan. Grant amount cannot exceed the QJP or DTIF loan.


DTIF Loan ProgramDTIF Loan ProgramDTIF Loan Program DTIF Loan Program

Used only for physical improvements. Used only for physical improvements. y p y py p y p

Max loan: $1 million.Max loan: $1 million.

Repayment: InterestRepayment: Interestonly for first 2 years.only for first 2 years.

One job for everyOne job for every$25,000 loaned.$25,000 loaned.

Owner user.Owner user.


Hatfield Loan ProgramHatfield Loan ProgramHatfield Loan Program Hatfield Loan Program

For small business in the inner N/NE neighborhoods For small business in the inner N/NE neighborhoods ––gg(Burnside to Columbia; 42nd to Greeley).(Burnside to Columbia; 42nd to Greeley).

Maximum loan amount: $500,000Maximum loan amount: $500,000Maximum loan amount: $500,000Maximum loan amount: $500,000

One job for every $25,000 loaned.One job for every $25,000 loaned.

Eligible for working capital, equipment purchase, real Eligible for working capital, equipment purchase, real estate purchase, and bank loan guarantee.estate purchase, and bank loan guarantee.

Borrower must occupy at least 75% of space. Borrower must occupy at least 75% of space.


E D A Loan ProgramE D A Loan ProgramE D A Loan ProgramE D A Loan ProgramCitywide program designed to assist small businesses.Citywide program designed to assist small businesses.

Maximum loan amount: $150,000 ($250,000 for R/E).Maximum loan amount: $150,000 ($250,000 for R/E).


Eligible for working capital, equipment purchase, andEligible for working capital, equipment purchase, andEligible for working capital, equipment purchase, and Eligible for working capital, equipment purchase, and real estate acquisition.real estate acquisition.

Borrower must occupy at least 75% of spaceBorrower must occupy at least 75% of spaceBorrower must occupy at least 75% of space.Borrower must occupy at least 75% of space.


Economic Development General Loan FundEconomic Development General Loan FundEconomic Development General Loan Fund Economic Development General Loan Fund

Citywide program designed to spur business Citywide program designed to spur business y p g g py p g g pdevelopment in distressed neighborhoods.development in distressed neighborhoods.

Maximum loan amount: $300 000Maximum loan amount: $300 000Maximum loan amount: $300,000.Maximum loan amount: $300,000.


Eligible for working capital, equipment purchase, and Eligible for working capital, equipment purchase, and real estate acquisition.real estate acquisition.

Borrower must occupy at least 75% of space.Borrower must occupy at least 75% of space.


Near Equity FundNear Equity FundNear Equity Fund Near Equity Fund

Citywide program Citywide program -- hybrid between equity and debt.hybrid between equity and debt.y p gy p g y q yy q y

Business must be existing for at least 2 years.Business must be existing for at least 2 years.

Designed for businesses with 20 or less employees.Designed for businesses with 20 or less employees.

M i l t $50 000M i l t $50 000Maximum loan amount: $50,000.Maximum loan amount: $50,000.

Designed for working capital and equipment purchase.Designed for working capital and equipment purchase.g gg g


Loan RatingLoan RatingLoan Rating Loan Rating Hard Rating:Hard Rating:

Business Management ExperienceBusiness Management ExperienceBusiness Management ExperienceBusiness Management ExperienceIndustry ExperienceIndustry ExperienceRepayment AbilityRepayment AbilityCredit / CharacterCredit / CharacterCollateralCollateral

Soft Rating:Soft Rating:Leverage of PDC DollarsLeverage of PDC DollarsBusiness ConditionsBusiness ConditionsOther Public BenefitsOther Public Benefits


Business Finance Program Business Finance Program FY 2000 th h 2007FY 2000 th h 2007FY 2000 through 2007 FY 2000 through 2007

Number of businesses assisted:Number of businesses assisted: 327327Number of businesses assisted: Number of businesses assisted: 327327

Total resources deployed: Total resources deployed: $67 million$67 million

Percentage to small business: 85% Percentage to small business: 85% (approx.)(approx.)

Total private dollars attracted: Total private dollars attracted: $390 million$390 million

Number of jobs projected: Number of jobs projected: 12,000 12,000 (approx.)(approx.)(8/15/07)
