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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


























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