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The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
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OREGON BUSINESS DEVELOPMENT DEPARTMENT

 

DIVISION 16

BUSINESS RETENTION FUND

123-016-0000

Purpose

The purpose of these rules is to provide procedures, standards and criteria for the making of Oregon Business Development Commission expenditures for feasibility studies, technical assistance and management consulting services from the Business Retention Fund.

Stat. Auth: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 10-1985(Temp), f. 11-7-85, ef. 10-22-85; EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; OBDD 12-2010, f. 4-30-10, cert. ef. 5-1-10

123-016-0010

Definitions

For the purposes of these rules additional definitions may be found in Procedural Rules, OAR 123-001. The following terms shall have the following definitions, unless the context clearly indicates otherwise:

(1) Business retention services means technical assistance provided by experts, as qualified by the department, focused on retaining the viable operation of an existing business in Oregon. The services include, but are not limited to the following types of assistance:

(a) Assessment -- initial evaluation to determine the extent of issues experienced by the business and the likelihood of the business’s viability.

(b) Management consulting -- identifying and solving problems including, but not limited to, management improvements, marketing problems, financial problems, equipment needs, productivity improvements, production control, cost and pricing systems, and/or ownership.

(c) Feasibility study -- a study conducted to analyze the feasibility of reopening, keeping open, or converting a business firm or a facility to another product, identify ownership possibilities, including employee ownership, and conduct an appraisal of the facility's assets to be purchased.

(d) Conversion plan -- a plan to convert a facility to a new product or enter a new market or convert a company's ownership structure, including an employee buy-out.

(e) Transition plan -- strategic and business plans to grow or alter a business operation, including, but not limited to, mergers and transitions to local owners.

(f) Restructuring plan -- plan for the acquisition of new equipment, technologies, management practices, sourcing solutions, and growth options focused on retaining the viable operation of an existing business in Oregon.

(g) Any other type of technical assistance necessary to retain a business in Oregon, maintain Oregon employees, or assist an Oregon business to manage growth that will lead to the creation of new jobs in Oregon.

(2) “Fund” means the Business Retention Fund.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 10-1985(Temp), f. 11-7-85, ef. 10-22-85; EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 4-1998(Temp), f. & cert. ef. 3-6-98 thru 7-24-98; Administrative correction 8-5-99; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09; OBDD 12-2010, f. 4-30-10, cert. ef. 5-1-10

123-016-0020

Eligibility

(1) Except as set forth in 123-016-0020(2), the following are eligible recipients of business retention services:

(a) A for-profit business firm, whose Oregon facility is:

(A) Engaged in:

(i) Technology manufacturing;

(ii) Wood and forest products processing;

(iii) Clean technologies;

(iv) Outdoor gear or active wear production;

(v) Agriculture or aquaculture development;

(vi) Food or seafood processing;

(vii) Other advanced manufacturing; or

(viii) producing goods or services and competing in markets for which regional, national or international competition exists; and

(B) Experiencing at least one of the following issues: Declining employment, declining sales, declining profits, or an erosion of working capital, that is likely to lead to major employee layoffs or closure of the business, or an emerging industry or part of an industry cluster with high potential for market growth, job retention and job creation.

(b) A public or non-profit, private entity which:

(A) has as one of its primary purposes, as stated in its articles of incorporation, charter or bylaws, the promotion of economic development in Oregon; and

(B) Is requesting business retention services for an industrial facility in Oregon which is actually closed or houses a business which has announced its closure.

(2) Business retention services shall not be used to relocate a business from one labor market in Oregon to another.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09; OBDD 12-2010, f. 4-30-10, cert. ef. 5-1-10

123-016-0030

Awards of Grants and Loans; Match Requirements

(1) A business firm described in OAR 123-016-0020(1)(a) is eligible for a maximum award of $15,000 from the Fund for business retention services.

(2) A public or non-profit, private entity described in OAR 123-016-0020(1)(b) is eligible for a maximum grant of $30,000 from the Fund for business retention services. A public or non-profit, private entity recipient will be required to contribute a minimum of 25 percent of cost of the business retention services in cash.

(3) As provided in OAR 123-016-0050, an award from the Fund may be required to be repaid, in whole or in part, if certain conditions are met.

(4) In most instances, the department will first approve an award from the Fund to conduct an assessment to determine what, if any, additional business retention services are likely to result in retaining the viable operation of an existing business in Oregon.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 10-1985(Temp), f. 11-7-85, ef. 10-22-85; EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09; OBDD 12-2010, f. 4-30-10, cert. ef. 5-1-10

123-016-0040

Application and Award Approval

(1) An eligible recipient, as listed in 123-016-0020(1), shall make application for business retention services to the department on a form prescribed and provided by the department.

(2) All applications shall be reviewed by the department. The department may also designate an advisory committee to review applications and make recommendations to the department.

(3) The department may request any additional information, such as an assessment or an appraisal, or may recommend a modification to the application in order to make a final determination on an award for business retention services from the Fund.

(4) Prior to making an award from the Fund for a for-profit business firm described in OAR 123-016-0020, the department will make a determination that business retention services are likely to result in retaining a viable operation.

(5) Prior to making an award from the Fund for a closed facility or for a facility that houses a business which has announced its closure, the department must determine:

(a) There is a reasonable probability of restarting or converting the facility; and

(b) The business retention services will include consideration of reemploying or continuing the employment of that facility's former or existing labor force.

(6) In making a determination on an award from the Fund, the department shall give preference to businesses, facilities that are closed, or facilities housing businesses which have announced their closure which are located in a distressed area as designated under OAR 123-024.

(7) The department shall either approve or deny an application.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 10-1985(Temp), f. 11-7-85, ef. 10-22-85; EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09

123-016-0050

Contracts for Awards

(1) Upon approval of an award from the Fund, the department will enter into a contract with the recipient If the recipient is a for-profit business, the contract will require, among other items, repayment of the grant if the department has determined the business has the ability to repay the grant without jeopardizing the viability of the business. The department will make this determination based, in part, on a recommendation from the contracted expert.

(2) Upon approval of an award from the Fund, the department will determine the optimal method of delivering the business retention services to the recipient. In most instances, the department will identify an expert in the subject area in which the business is experiencing problems or an expert in the industry in which the business is engaged and enter into a contract with the expert for the provision of the business retention services.

(3) The department must ensure that costs for contractors are consistent with usual and customary rates and that contractors are certified, licensed, or otherwise experienced and qualified in their field.

Stat. Auth.: ORS 285A.075
Stats. Implemented: ORS 285A.224
Hist.: EDD 10-1985(Temp), f. 11-7-85, ef. 10-22-85; EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09

123-016-0060

Confidential Records

For applicants and recipients of business retention services, ORS 192.502(17) lists certain types of business information that are exempted from public records requests.

Stat. Auth: ORS 285A.075
Stats. Implemented: ORS 285A.224, 192.502(17)
Hist.: EDD 4-1987(Temp), f. & ef. 10-1-87; EDD 13-1988, f. 5-24-88 (and corrected 5-27-88), cert. ef. 5-27-88; EDD 19-2008(Temp), f. 6-9-08 cert. ef. 6-10-08 thru 11-15-08; Administrative correction 12-22-08; EDD 12-2009, f. & cert. ef. 10-1-09; OBDD 32-2010, f. & cert. ef. 10-1-10

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