Business Loan Programs

The City’s Revolving Loan Program (RLP) provides commercial loans to Portland businesses to facilitate economic growth and job creation. Loans are made to start-ups and existing businesses, ranging from as little as $10,000 to as much as $200,000.

Businesses are encouraged to establish relationships with banks and credit unions, and to access the conventional financing they offer whenever possible. The City’s RLP is intended to assist when there’s a financing gap or when businesses are not yet able to access conventional financing.  Many RLP loans are provided as gap financing in which the City’s lending Board, the Portland Development Corporation (PDC), partners with a lead lender (generally banks, credit unions or other community lenders). For start-ups and even existing businesses that cannot yet obtain conventional financing, City loan assistance is available, particularly through smaller loans.

Funding Reasons

Loans from the City’s RLP can help to fund a wide range of activities. These include building construction and renovations, leasehold improvements, machinery and equipment purchase, permanent working capital (e.g., inventory and receivables), purchase of an existing business, refinancing (if the project also includes a business expansion component at least 25% over the debt amount to be refinanced), acquisition of fishing vessels and marine related machinery and equipment, acquisition of real estate.

Interest Rates

Fixed interest rates are determined by the PDC, the City's lending board, on a case-by-case basis based upon a variety of considerations, such as anticipated job creation and retention, collateral, level of risk, credit worthiness, etc.   Generally, interest rates are a point or two above the rates offered by the banking community.

Loan Programs

An overview of each of the loan programs within the City’s RLP follows; however, City staff can determine which program will best meet the needs of an applicant.  It is not necessary for an applicant to make this determination.

60/30/10 Portland Business Program

  • Loan of $50,000 to $200,000
  • 60% lead lender (with possible guarantee from SBA or FAME), 30% City, 10% equity from borrower
  • Flexible terms up to 20 years with a 10-year balloon
  • Especially useful for projects between $250,000 and $500,000 for which the SBA 504 may not be cost effective
  • May be used for working capital
  • No prepayment penalties

Micro Business Loan Program and Creative Economy Loan Program

  • Loans up to $50,000
  • Maximum loan term up to 7 years
  • Prefer minimum private investment to Micro Loan dollar ratio of 1:3 (for example, $30,000 project: $22,250 Micro Loan, $7,500 borrower)

Real Estate Development Loan Program

  • Loans up to $200,000
  • Can be used to finance non-owner occupied real estate
  • Minimum private investment to RLP ratio of 1:1, including minimum 10% equity investment from borrower
  • Current interest rate policy is prime plus 2-4%
  • Maximum loan term of 30 years with 10-year balloon
  • Cannot be used for refinancing

Regional Economic Development Loan Program (FAME)

  • Loans up to $200,000
  • Maximum loan term of 20 years with 10-year balloon
  • Maximum loan amount relative to project cost is as follows:
    • Loans of less than $50,000 may be for the total amount of new funds being provided to borrower
    • Loans of $50,000 - $100,000 may not exceed ½ of the net new funds being provided to borrower
    • Loans over $100,000 may not exceed 1/3 of the net new funds being provided to borrower

Loan Application

Applications to the City’s RLP require the same materials that a bank would request, for example, historical financials, projections, and personal financial statements, along with business plans when the applicant is a new business.

More Information

Please contact the City’s Business Programs Manager Nelle Hanig at 207-756-8019 with any questions or to discuss a possible loan.