Oregon Business Development Fund (OBDF)
Business Oregon (Oregon Business Development Department)
Up to $2,000,000
Oregon's gap-financing business loan
Oregon's primary state-level direct loan and revolving fund program for small businesses that cannot fully access conventional financing. Administered by Business Oregon, OBDF provides long-term fixed-rate loans of up to $2 million for capital equipment, real property, and working capital. Often structured as a gap-financing layer alongside a bank loan. Particularly useful for manufacturers, rural businesses, and companies in underserved communities.
- Funding type
- Loan
- Level
- State
- Amount range
- $50,000 – $2,000,000
- Realistic amount
- Most OBDF loans to small businesses range $100,000–$500,000 as a gap-financing layer (20%–40% of a total project) alongs…
- Deadline
- Rolling — applications accepted year-round subject to fund availability.
- Status
- active
- States
- OR
- Payment model
- advance
Who qualifies
- Oregon-based for-profit business with primary operations in Oregon
- Must demonstrate inability to fully finance the project through conventional bank lending alone (gap-financing rationale required)
- Must have a viable business plan with demonstrated repayment ability
- Senior lender (bank or other institution) must be involved and willing to be in first-lien position
- No minimum revenue requirement, but business must show financial stability and cash flow sufficient to service debt
- Business must be in good standing with Oregon Secretary of State and Oregon DOR
- Projects creating or retaining Oregon jobs are prioritized
- Cannot be primarily a real estate investment or speculative venture
Hard requirements
- Must be incorporated
- Minimum project size: $50,000
What it covers
Eligible expenses
- Purchase of commercial real property (land and buildings) in Oregon
- New construction or renovation of commercial facilities
- Purchase of capital equipment and machinery
- Working capital for operational growth (limited to 30% of project in many cases)
- Leasehold improvements
- Soft costs related to eligible capital projects (architect fees, engineering, permits)
Ineligible expenses
- Refinancing existing debt (in most cases)
- Speculative real estate investment not tied to business operations
- Purchase of inventory for resale
- Passive investment companies
- Projects outside Oregon
How to apply
-
1
Contact a Business Oregon regional project manager
Reach out to Business Oregon's regional office covering your area. Describe the project, financing need, and primary lender. The project manager will assess preliminary fit and guide the application process.
~10 hrs
-
2
Prepare and submit application package
Compile: business plan or project description, 3 years of financial statements, current balance sheet, tax returns, projections, details of the senior loan commitment, description of collateral, and a jobs-impact statement.
~10 hrs
-
3
Business Oregon credit review and underwriting
Business Oregon underwrites the loan including collateral appraisal, credit analysis, and environmental review. Process typically takes 6–12 weeks from complete application.
~10 hrs
-
4
Loan commitment and closing
Upon approval, Business Oregon issues a commitment letter. Loan closes simultaneously with or shortly after the senior bank loan. Legal documentation coordinated with both lenders.
~10 hrs
OBDF works best as a gap layer when you already have a bank saying yes to 50–60% of the project. Approach a Business Oregon regional manager before finalizing your bank term sheet — they can shape the structure to maximize OBDF participation.
Deadline & timing
OBDF operates on a rolling basis with no fixed application windows. Fund availability can fluctuate; Business Oregon regional project managers should be contacted early to gauge current capacity and appetite for new projects.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.