Loading
The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

OREGON BUSINESS DEVELOPMENT DEPARTMENT

 

DIVISION 91

OREGON BUSINESS RETENTION AND EXPANSION PROGRAM

123-091-0001

Purpose

This division of administrative rules clarifies, specifies and establishes procedures, standards and criteria for operation of and making loans to businesses from the Oregon Business Retention and Expansion Program (OBEP).

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

123-091-0010

Definitions

For the purpose of this rule, the following terms shall have the following meanings:

(1) “Business” means any individual, association of individuals, joint venture, partnership, limited liability company or corporation which is validly existing and authorized to conduct business in Oregon.

(2) “Calendar year” means an individual’s tax year of January 1–December 31.

(3) “Department” means the Oregon Business Development Department as established under ORS 285A.070.

(4) “Director” means the director of the Department as appointed under ORS 285A.070.

(5) “Eligible Employee” means a new employee of the Business:

(a) Who will have an annual wage that is at least 150% of the most recently available average pay for the county in which the new job will be created or the most recently available average pay for the state, both as determined by the Oregon Employment Department in the Covered Employment and Wages Summary Report, whichever is less;

(b) Who will be hired by the Business at its Oregon facility before the end of the two calendar years following the year of OBEP loan approval;

(c) For whom FICA and state and federal income taxes are deducted from his/her gross wages, which are then forwarded to the appropriate agencies by the Business on behalf of the person;

(d) For whom the Business pays state and federal unemployment insurance; and

(e) For whom the Business contributes to FICA.

(6) “Full-time Job” one Full-time Job equals 1,820 Hours Worked in a one-year period.

(7) “Hours Worked” means all hours that the employee worked, if the employee is paid for those hours. “Hours worked” does not include holiday, vacation time, sick leave or any other paid time where no work is performed.

(8) “OBEP Fund” means the Oregon Business Retention and Expansion Fund.

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

123-091-0015

Criteria for OBEP Fund Loan

In order to be eligible for a loan from the OBEP Fund, the Department must first find:

(1) That, at the time a loan from the OBEP Fund is considered for approval, the Business:

(a) Has at least 150 employees as demonstrated by documentation determined to be acceptable by the Department;

(b) Is a traded sector business, as defined in ORS 285A.010;

(c) Is not a retailer, as defined in ORS 72.8010;

(d) Plans to hire at least 50 full-time Eligible Employees before the end of the two calendar years following the year in which the OBEP loan is approved;

(e) Has stated to the Department that a loan from the OBEP was an integral factor in the Business’s decision to hire at least 50 full-time Eligible Employees; and

(f) Has provided all information to the Department as requested and as required by the Oregon Business Retention and Expansion Program;

(2) That the Business’s proposed expansion will result in significant, long-term economic benefit in the region and will serve as a catalyst for additional economic development benefits in the state.

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

123-091-0020

Approval and Amount of OBEP Fund Loan

(1) The Director, or his designee, in his sole discretion, shall determine whether to approve a loan to a Business from the OBEP Fund and the amount of the loan.

(2) A loan from the OBEP Fund shall not exceed the lesser of:

(a)(A) The amount of estimated Oregon personal income taxes to be paid in the two calendar years following the year of OBEP loan approval by Eligible Employees, using the result of the following formula:

(B) Average wage of all Eligible Employees multiplied by the applicable Tax as a Percent of Taxable Income from Table B: Average Income and Tax (Dollars) in the Oregon Department of Revenue’s most recently published Oregon Personal Income Tax Statistics, All Returns and Full-Year Resident Returns (by AGI) multiplied by 2.

(b) The amount currently available in the OBEP Fund.

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

123-091-0025

Loan Agreement

After approval of a loan from the OBEP Fund, the Department will enter into a loan agreement with the Business. Among other items, the loan agreement will contain the following provisions:

(1) The Business must enter into a First Source Agreement in accordance with OAR 123-070;

(2) The Business, to the extent practicable, must consult with vendors in Oregon before entering into contracts for goods and services;

(3) The Business must duly execute and deliver the following to the Department within 90 days from the date the loan was approved:

(a) Loan agreement;

(b) Promissory note;

(c) If required, a copy of the First Source Agreement; and

(d) Any other certificates, opinions and documents as the Department may reasonably require regarding the authorization of the loan agreement, the promissory note and any related documents.

(4) Loan funds must be disbursed to the Business no later than 120 days after the loan was approved, provided that the Department, in the reasonable exercise of its administrative discretion, has made a determination that there are sufficient funds in the OBEP Fund to make the disbursement;

(5) The terms for forgiveness of the loan, which will, among other items, require that the personal income tax estimated to be generated by the new Full-time Jobs in no more than two consecutive calendar years is equal to or exceeds the amount of the loan and that the actual number of new Full-time Jobs is equal to or exceeds the number of Full-time Jobs proposed at the time the loan was approved. The Department intends to obtain information to calculate the personal income tax estimated to be generated by the new Full-time Jobs and the actual number of new Full-time Jobs from the Oregon Employment Department. If the Department is not able to obtain information from the Oregon Employment Department to make these calculations, the Business will be required to provide comparable information, as the Department may reasonably request, to the Department.

(6) If the personal income tax estimated to be generated by the new Full-time Jobs (“Total PIT”) is less than the amount of the loan, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (Total PIT / the loan amount)). If the actual number of new Full-time Jobs is less than the number of new Full-time Jobs proposed at the time the loan was approved, the Business must immediately repay to the Department an amount equal to: (the loan amount multiplied by .5) multiplied by (1 – (the actual number of new Full-time Jobs / the required number of new Full-time Jobs); and

(7) The Business must submit a report to the Department which lists categories of new positions created in the time period used to calculate the personal income tax, as described in paragraph e. above, the average hourly wage of the new positions, and the number of persons hired to fill those positions.

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

123-091-0030

Waivers

The Director, or his designee, may waive non-statutory requirements of this division of administrative rule if such a waiver will serve to further the goals of the Oregon Business Retention and Expansion Program.

Stat. Auth.: ORS 285A.075, 285B & OL Ch. 549, Sec. 1-8 & 10-11
Stats. Implemented: ORS 285B, OL Ch. 549, Sec. 1-8 & 10-11
Hist.: OBDD 4-2012, f. 3-30-12, cert. ef. 4-2-12

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​