List Of Financing Alternatives for Manufacturing Companies In Oregon - 2024

Updated on August 12, 2024

Manufacturing businesses in Oregon have many options to get financial help for growth. It's important for them to know about different ways to get funding. This can help them grow and overcome economic challenges. They can look into grants, loans, tax breaks, bonds, and investing as ways to get money. We will show you how these financial tools work and tell you about special funding from sources like Porter Capital.

Key Takeaways

• Oregon offers diverse financing alternatives to support the growth and development of manufacturing companies.
• Grants, loans, and tax incentives are among the top financing tools available.
• Customized funding options are accessible through organizations like Porter Capital.
• Understanding the various finance options helps businesses secure necessary capital.
• Business Oregon's programs play a pivotal role in providing financial support to manufacturers in the state.

Oregon's manufacturing companies can check out matching grants and loan programs. They can seek financial aid for community projects, get tax breaks, or use private equity. Knowing all the resources available can really help a company grow in a strong and competitive way.

Current loan interest rates in Oregon for farms show how affordable financing can be. Operating loans have interests between 5.375% and 5.625%. Ownership loans are at 5.625% for Direct loans and 3.625% for Direct Joint Financing loans¹. These rates make financing very attractive for businesses.

Introduction to Financing Needs for Manufacturing Companies in Oregon

The finance scene for Oregon's manufacturers comes with unique needs and hurdles. It is vital for those invested in this sector's growth to understand these financial demands. They focus on getting enough business funds and having access to different financial instruments.

For these firms, knowing the financial help available is crucial. This includes support from government projects, small businesses, and entrepreneurs. The growth of Oregon's manufacturing is supported by Development Finance Agencies (DFAs). These agencies offer numerous programs to help individuals understand financing tools².

The Manufacturing Industry Consortium in Oregon meets every quarter. They talk about sector challenges and progress. The first 2024 meeting is on January 31 at the Oregon Institute of Technology in Wilsonville. More meetings will happen during the year². These meetings create a space where financial issues are discussed to support Oregon's manufacturing.

Addressing these finance needs is about more than just keeping operations running. It involves smartly handling cash flow and growth potential. Adequate financial backing is key to Oregon's economic health. It's crucial for manufacturing firms to look into all financial aids and resources.

Grants for Manufacturing Companies in Oregon

Grants are vital for Oregon's manufacturing sector, supporting growth and innovation. They help small businesses grow and support community projects. This boosts the state's economy.

Matching Grants

Oregon offers matching grants to help manufacturers grow. Business Oregon helps small businesses export goods with these grants. This opens new markets and boosts their competitive edge³. The Oregon Innovation Council provides extra grants for federal research projects, like SBIR or STTR. This funding helps scale up innovations⁴. $22 million is set aside to help manufacturers use advanced technologies and be more eco-friendly⁴.

Grants for Community Projects

Financing for community projects is crucial in Oregon. The USDA's RBDG program offers grants for rural business growth³. Business Oregon’s TA Grants have $4.7 million for underserved small businesses. These efforts improve community life³.

Grants support projects like wastewater upgrades and rural entrepreneurial centers. They have a significant impact⁴³. Oregon has 342 small business grants available. These cover public health, agricultural research, and more. They aim to help underrepresented groups⁵.

Loans and Loan Guarates in Oregon

Manufacturing companies in Oregon find essential help through loans and loan guarantee programs. These offerings aid businesses struggling to get traditional bank loans. They play a critical role in keeping companies running and boost state economic growth.

Direct Loans

Direct loans make getting financial help easier for manufacturers. The SBA 504 loan program is one example, providing secure, low-interest financing for major expenses like property and equipment⁶. There are also SBA 7(a) loans, appreciated for their flexible payback terms and stable interest rates, helping startups⁶. An Oregon consulting firm bought a business with a $2,200,000 SBA 7(a) loan⁶.

Loan Guarantee Programs

Loan guarantee programs give better loan access by collaborating with local banks. The USDA’s Business & Industry CARES Act Program is currently offering big loan guarantees to help rural businesses during COVID-19⁷. Banks, credit unions, and lending institutions can provide these supported loans⁷.

Businesses eligible for these loans include various entities aiming to benefit Americans and maintain jobs in rural areas⁷. They can finance business expansion, infrastructure upgrades, buy equipment, or refinance debt to improve cash flow⁷. This effort boosts the economic health of rural communities by supporting manufacturing⁷.

Loan guarantees cover up to 80% of the loan for Fiscal Years 2024 and 2025⁷. Terms, rates, and fees are discussed between lenders and borrowers. This ensures rural manufacturers have the capital they need to grow.

Tax Incentives for Manufacturers in Oregon

Oregon tax incentives significantly boost manufacturing projects. They benefit both the businesses and the local communities. The Strategic Investment Program (SIP) is a top choice. It can cut property taxes on big investments for up to 15 years⁸. This makes Oregon a great place for manufacturers to grow. The Governor's Strategic Reserve Fund also offers loans that don’t have to be paid back. These loans focus on creating and keeping jobs in the state⁸.

Oregon's Enterprise Zones are key to its tax incentive strategy. They cover 48 rural and 11 urban areas. Here, new properties get a break on property taxes for three to five years⁸. This encourages businesses to invest and create jobs. In 2018, opportunity zones were set up, including one in McMinnville (census tract #306.01)⁹.

The Oregon Investment Advantage offers another bonus. It reduces corporate income taxes for new businesses in certain spots, as long as they hire enough people. This fits well with other specific perks. For instance, there's a 15% tax credit for semiconductor companies on research activities, with a maximum of $4 million per taxpayer each year⁹.

Oregon is also known for being business-friendly, ranking 11th in the U.S. It doesn’t have a general sales tax or use tax on equipment⁹. Plus, there’s no inventory tax. These policies lower costs for manufacturers. With the Oregon Business Expansion Program, companies creating a lot of jobs get cash incentives. This boosts both big and small manufacturers in Oregon⁹.

McMinnville's Urban Renewal Programs play a big part locally. They offer grants and loans for fixing up properties. A single grant can go up to $2,500. Loans can cover 20% of construction costs, up to $100,000⁹. These benefits complement state-wide incentives. Together, they support the growth of manufacturing in Oregon.

Private Activity/Conduit Bonds in Oregon

Private activity, or conduit, bonds are key for funding industrial projects in Oregon. They are tax-exempt, helping companies save on interest costs compared to regular loans. For example, using these bonds for new equipment can save about 20% in interest¹⁰. They offer interest rates 15% to 25% lower than standard options¹⁰.

The cap for tax-exempt bonds is $10 million, but larger amounts might get funded through usual loans¹⁰. Manufacturing firms must watch their spending to qualify; their capital expenses should stay below $20 million around the bond's issuance time¹⁰. It's crucial to note that these bonds focus on new equipment, not refinancing¹⁰.

Applying for IRBs involves getting approval from several government layers, which might take time¹⁰. Still, they're worth considering for companies buying new equipment, especially when interest rates are high¹⁰.

Looking at a wider perspective, Oregon's revenue bonds offer an alternative funding path. They are paid off with the income from the funded projects and don't depend on property taxes¹¹. Issuers can back projects without promising tax income or needing voter okay in most scenarios¹¹. Enterprise revenue bonds are appealing for projects that will bring in money to cover the debt, serving well for industrial financing in Oregon¹¹.

For more info on how Oregon Facilities Authority discusses bond applications and deals for nonprofits, check the meeting agenda book here¹⁰. This document also talks about executive director updates and election news, which help issue tax-exempt revenue bonds for big projects.

Equity Investments in Oregon

Equity investments are key to growing businesses in Oregon. They help start and grow companies, driving our economy and creating jobs. Business Oregon offers various funding tools, including equity investments, to support local businesses and communities. To explore these funding options, talk to Regional Development Officers. They can help pick the best investment paths¹².

Automated Clearing House (ACH) Banking

The Automated Clearing House (ACH) banking system simplifies financial transactions. This is especially helpful for Oregon's manufacturing companies. ACH banking cuts down on transaction costs and helps businesses manage money better. This, in turn, makes it easier to invest in Oregon's future¹³.

Oregon credit unions offer great support for small businesses. They provide micro-loans at rates usually 1% lower than banks. These loans can be up to $50,000, with bigger amounts possibly needing state or federal guarantees¹². The SEC's Regulation D also helps businesses get funding. For example, Rule 504 lets businesses offer up to $1 million in securities annually, with certain rules. Rule 505 allows offering up to $5 million to both accredited and non-accredited investors¹².

Small towns in Oregon are getting creative with funding by setting up community-based start-up funds (SUFs). These funds offer crucial capital to new and growing manufacturing businesses. They work with minimal capital and keep costs low, which boosts local economies despite financial challenges¹³.

Combining equity investments with financial tools like ACH banking boosts support for manufacturing in Oregon. It lays a strong foundation for ongoing economic growth¹².

Bank Loans for Manufacturing Companies in Oregon

Oregon manufacturing companies can pick from many bank loan options. These are crafted for startups, ongoing operations, equipment, and real estate loans. You'll find details on loan programs from Oregon's banks here.

Entrepreneurial Development Loan Fund

The Entrepreneurial Development Loan Fund (EDLF) helps startups, small businesses, and microenterprises in Oregon. With loans up to $75,000 at a fixed interest rate of prime plus 2%, it's perfect for businesses starting in Oregon¹⁴.

Mercy Corps Northwest Loans

Mercy Corps Northwest has loans for every business phase. Startup loans go from $500 to $20,000. For expansion, you could get up to $50,000. There are also incubator loans from $1,000 to $2,500 for credit building. It supports businesses from start to growth¹⁴.

Beneficial State Bank Loans

Beneficial State Bank focuses on loans with social impact. Their Business Builder loan ranges from $10,000 to $150,000. It suits working capital, and buying assets or real estate. These loans aim at stimulating economic growth in Oregon¹⁴.

Columbia Bank Loans

Columbia Bank expanded in Oregon by acquiring Pacific Continental Bank in 2017¹⁴. They offer SBA loans, equipment financing, and working capital loans. It's a go-to for manufacturers in need of versatile financial solutions¹⁴.

People’s Bank of Commerce Loans

People’s Bank of Commerce is an expert in construction and real estate loans. Their offerings include contractor and conforming real estate loans. These are great for manufacturers aiming to grow their operations in Oregon¹⁴. With such tailored options, they support businesses in capital-heavy projects.

Read more about these financing alternatives and other available resources.

Specialized Loan Programs in Oregon

Oregon offers a range of specialized business loans for small businesses. These include the Oregon Business Development Fund and the Specialty Crop Block Grant Program. They both offer significant support to various sectors in the state's economy.

Oregon Business Development Fund

The Oregon Business Development Fund is a revolving loan fund. It supports small business funding. The fund provides low-interest loans to both new and existing businesses.

These loans help with business establishment and expansion. They can be used for a wide range of purposes. This includes buying land, buildings, machinery, and inventory, as well as for repair and modernization¹⁵.

By providing these business loans, Oregon helps businesses thrive financially¹⁶.

Specialty Crop Block Grant Program

The Specialty Crop Block Grant Program offers grants to agricultural businesses. It focuses on unique crops. This program encourages innovation and sustainability in Oregon's agriculture.

It helps businesses market and cultivate crops that might not get attention elsewhere¹⁷. The grant targets small businesses enhancing Oregon’s agri-diversity. This support helps agricultural businesses stay competitive and grow.

Local Funding Initiatives in Oregon

In Oregon, there are many ways to get funding to help small businesses grow. The Oregon Watershed Enhancement Board needs businesses to cover 25 percent of costs for land grants. This is especially great for those working on environmental projects¹⁸.

Craft3 is a group that gives out loans with low interest to communities in the Pacific Northwest. It's a good choice for companies that need money but don't want to pay a lot of interest¹⁸. The Oregon Department of Transportation has a big budget of about $15 million each year for transportation projects. This is really helpful for companies that rely on good transport services¹⁸.

Business Oregon plays a big role by offering as much as $10 million to one applicant for improving infrastructure. This offers a lot of money for companies in manufacturing and processing¹⁸. Also, the Oregon Department of Land Conservation and Development has up to $6 million for projects that help manage the coast. This helps businesses follow environmental rules¹⁸.

The Oregon Brownfields Redevelopment Fund and the Oregon Brownfields Cleanup Fund help with fixing up old sites. Business Oregon manages these funds¹⁸. Small towns have a chance to get as much as $250,000 from the Oregon Department of Transportation's Small City Allotment Program¹⁸.

Oregon Metro funding focuses on making housing and jobs fair for everyone. In 2023, it gave out more than $3 million¹⁸. The Oregon Department of Environmental Quality has about $8 million set aside to cut down on diesel emissions. This shows they care about keeping the environment clean¹⁸.

Overall, these funding opportunities in Oregon show how important it is to have financial support from the state. It helps economic growth and supports small businesses in different fields. By using these resources, businesses can grow a lot and help make the economy better.

Networking and Support Resources in Oregon

Networking is key in Oregon's manufacturing industry for growing businesses. The Wilsonville Area Chamber of Commerce is central to this. It organizes events that bring businesses together. This allows them to share insights and resources¹⁹. Such activities help in forming collaborations that drive company growth and success.

Business Oregon boosts the manufacturing field with financial and technical support for small and medium businesses¹⁹. These aids are vital for overcoming financial hurdles and fostering long-term growth.

The Oregon Manufacturing Extension Partnership (OMEP) helps too. It focuses on improving Manufacturing Operations, Business Financials & Strategy, and Workforce Solutions¹⁹. OMEP's goal is to make Oregon's manufacturing sector more competitive and efficient.

Gap financing loans are crucial for business growth. The Mt Hood Economic Alliance (MHEA) offers these loans in Clackamas, Hood River, and Wasco counties¹⁹. They provide needed funds to cover financial gaps and boost the local economy.

It's also essential to have a trained workforce. The Clackamas Workforce Partnership invests in training and education¹⁹. This ensures businesses have the skilled workers needed for success.

With nearly 400,000 small businesses, Oregon highlights the need for financial support and strong business strategies²⁰. Using these resources and good networking, manufacturing businesses can stand out in a bustling market.

Conclusion

Getting funds for businesses in Oregon's making sector is key to overcome economic growth hurdles. Companies can pick from grants, loans, tax breaks, and equity investments. Using these local options well is vital for staying profitable and efficient. For instance, Oregon's job growth rate is six times the U.S. average, making it a great place for businesses to grow²¹.

To handle money smartly in Oregon's manufacturing, it's about looking at what you own and creating a cash-friendly culture. Making your accounts receivable better can really help with cash flow. Also, Oregon lets you use net operating losses to lower taxes for up to 15 years. This gives manufacturers more ways to plan their finances²¹. You can learn more about improving cash flow in.

In the end, aiming for a strong financial plan in Oregon's manufacturing sector means using local funding and support. A good plan for managing cash helps businesses face economic issues and grow. With close to $350 million in venture investments lately, Oregon's making sector looks forward to a bright future²¹. These points highlight the importance of a custom financial plan in getting funds and ensuring long-term success in manufacturing.