February 23, 2022 3:20 a.m.

Tuesday the Oregon Senate approved legislation to permanently increase access to capital for Oregon small businesses and start-ups through the Entrepreneurial Development Loan Fund at the Oregon Business Development Department.

A release from the Oregon Senate Democrats said House Bill 4015 was approved on a 24 to 3 vote.

Senator Deb Patterson of Salem said, “We know that our small business community has been hit over the last two and a half years by the pandemic”. Patterson said after the last session, she began a 40 Businesses in 40 Days tour to get to know some of the business owners in her district and hear what issues they were facing. She said consistent feedback included issues with hiring staff, struggling to keep the doors open and delays in the supply chain. Patterson said there are still too many barriers to small business development in the state. She said, “Especially now, we must build an economy that helps working families and small businesses”.

Senator Kathleen Taylor of Portland said access to capital can determine whether a small business has the resources they need to thrive. Taylor is the Chair of the Senate Committee on Labor and Business. She said, “By supporting small business growth, we’re taking steps to promote the creation of family-wage jobs and creating opportunities for Oregon’s working families to get ahead”.

The release said HB 4015 permanently increases the maximum loan amount to $1 million and the cap on annual revenue to $1.5 million. The bill requires Business Oregon to adjust both amounts in accordance with changes to the Consumer Price Index starting in 2023. Additionally, the bill also adds a new alternative criterium for a business to be eligible for a loan: businesses with fewer than 25 employees. The measure also amends the required amount of equity funds that a business must provide for loan eligibility.

HB 4015 now goes to the Governor for final approval.