Alex Paul
Oregon Cascades West Council of Government has several loan programs to assist small businesses start up or grow, Diane Searle told community members attending the September breakfast meeting sponsored by the Sweet Home Economic Development Group Inc.
Searle is a program manager in the Community and Economic Development division and said the organization’s goal is not to compete with lending institutions but to partner with them to create winning situations for businesses and communities.
Loans can be from as little as $5,000 to as much as $1.3 million through the Small Business Association 504 program.
Business loan programs vary by county, Searle said, of Linn, Benton and Lincoln county options.
Many of the loans carry job creation criteria with them. For example, under certain loan programs, one new job must be created for every $15,000 borrowed. For another program, it’s one new job for every $50,000 borrowed.
“We want to see businesses create new jobs and help create a healthier community at the same time,” Searle said.
Searle said helping those considering opening a business develop a realistic business plan is a very important part of services rendered.
“We hope to be able to help generate local investment and to make the deal work,” Searle said.
But, she emphasized, it’s also important that prospective business owners have an accurate picture of the possible pitfalls that await them.
“They need to really look at what the cost of rent and insurance are going to be and look at the bottom line,” Searle said. “Sometimes, when they do that, they realize they can’t make enough money.”
Searle said she is especially happy when she sees a client start off with one of the smaller loan programs and work their way up into such things as building ownership.
Keith Miller of Linn County Investment Fund joined Searle partway through her presentation to talk about that program’s goals and successes.
He said the LCIF is an offshoot of the former Regional Strategies Program.
Businesses can borrow up to $50,000 interest free. Loan applications are reviewed by a board composed of Linn County business persons and then sent to the Linn County Board of Commissioners for final approval.
“For example,” Miller said, “this program helped with the construction phase of the local KOA and with the Fish Health Labs and Energy Connection in Sweet Home.”
Miller said LCIF’s goal is to leverage its loan money with other sources to create a sizable amount for the borrower.
Currently, there is only $100,000 in the LCIF program at this time, but Miller said grant applications for funds to boost that account are out.
Miller said wooing industry into any community is a major project.
“The number of giveaways to get industries into communities or states is staggering,” Miller said.
He said those “giveaways” include such things giving huge tax breaks, knowing that the community or state will recoup that money if several hundred new jobs are created.
Persons interested in the Council of Government loan programs can contact Searle at 924-8480.