Oregon Small Business Grants 2026
Oregon's primary business funding agency is Business Oregon, the state's economic development arm, which administers a suite of loan programs and performance-based grants designed for small businesses creating quality jobs. Unlike many states, Oregon no longer has an R&D tax credit — it was repealed in 2025 — but direct lending and wage-based incentives fill part of that gap.
Oregon small businesses should start with Business Oregon's loan programs: the Entrepreneurial Development Loan Fund (EDLF) offers up to $1M for businesses with 25 or fewer employees, and the Oregon Business Development Fund (OBDF) provides longer-term gap financing up to $2M alongside bank loans. Exporters should apply for the Oregon Export Promotion Program for up to $7,500 in reimbursements for trade shows and market entry costs. For larger employers planning significant job creation, the Oregon Business Expansion Program offers performance-based grants negotiated with Business Oregon.
The funding landscape in Oregon
Oregon's economy is diverse — semiconductor manufacturing (Intel operates its largest campus in Hillsboro), food and agriculture (wine, hazelnuts, berries, hops), timber and forest products, outdoor recreation, and a growing clean technology sector. Portland anchors a tech startup ecosystem that draws Pacific Northwest talent; rural Oregon relies more on agricultural processing, tourism, and natural resources. Business Oregon (oregon4biz.com) serves as the central gateway for state-level business financing — it does not administer grants in the traditional sense but operates two significant loan programs and a performance incentive for larger employers.
The Oregon Entrepreneurial Development Loan Fund (EDLF) is the most accessible state lending option for small businesses, offering loans up to $1M at below-market rates for companies with 25 or fewer employees or under $1.5M in annual revenue — free SBDC counseling is a requirement before applying, which also makes it a natural starting point for business advisory services. The Oregon Business Development Fund (OBDF) is a gap-financing tool that completes deals alongside bank loans, targeting equipment purchases, real property, and working capital needs up to $2M. Oregon repealed its Research & Development Tax Credit effective 2025, so businesses should rely on the federal Section 41 R&D credit for technology investment incentives. Exporters benefit from the Oregon Export Promotion Program, which reimburses up to $7,500 for qualified international market entry costs.
Oregon programs 5
State-administered grants, tax credits, and incentives for businesses based in Oregon.
Oregon Export Promotion Program (OTPP)
Up to $7,500 in export cost reimbursements for Oregon small businesses attending trade shows, testing compliance, or localizing websites.
Oregon Business Expansion Program (Business Oregon Expansion Fund)
OR performance grants for traded-sector cos creating 50+ new jobs at 150% of county avg wage. Requires 150 existing US employees and 'but for' showing.
Oregon Research Credit (Repealed)
Oregon's R&D Research Credit was repealed by 2025 Oregon Laws c.36 §4. No longer available for new claims.
Oregon Entrepreneurial Development Loan Fund (EDLF)
Oregon direct loans up to $1M for small businesses with ≤25 employees or ≤$1.5M revenue — requires free SBDC counseling.
Oregon Business Development Fund (OBDF)
Oregon long-term fixed-rate loans up to $2M for small businesses — gap financing alongside bank loans for equipment, real property, working capital.
Federal & national programs Oregon businesses can use
These programs are open to qualifying small businesses in every state, including Oregon — often the largest non-dilutive dollars available.
SBIR Phase I — U.S. Air Force / AFWERX
Air Force SBIR Phase I — up to $250K via traditional topics or AFWERX Open Topics (continuously open). STRATFI/TACFI bridge Phase I to Phase II.
SBA 7(a) Loan Program
SBA's flagship loan guarantee — up to $5M for almost any business purpose through an SBA-approved bank or lender.
SBA Microloan Program
Loans up to $50K for startups and small businesses through local nonprofit lenders. Average loan ~$13K. Apply to a local intermediary, not SBA directly.
Research & Development Tax Credit (Section 41)
Federal R&D credit offsetting up to $500K/yr in payroll taxes for early-stage companies with qualifying research spend.
SBA 504/CDC Loan Program
Fixed-rate financing up to $5.5M for owner-occupied real estate and heavy equipment — as little as 10% down, 25-year terms.
SBIR Phase I — USDA (NIFA)
Up to $175K USDA feasibility grant for ag-tech, food, forestry, and rural innovation startups — one annual solicitation, submitted via Grants.gov.
How to apply in Oregon
All Business Oregon programs (EDLF, OBDF, Export Promotion, Business Expansion) are administered through oregon4biz.com. For EDLF, you must first complete free SBDC counseling — contact SBDC Oregon (bizcenter.org) to schedule. OBDF applications require coordination with a bank lender, as the fund is designed as gap financing. The Export Promotion Program reimburses eligible costs after the fact; apply before your trade show or market entry activity. The Oregon Business Expansion Program requires direct engagement with a Business Oregon project manager for negotiation. Federal programs (SBIR, SBA loans) are available statewide through standard federal portals.
Oregon small business funding FAQ
What happened to Oregon's R&D tax credit?
Oregon's Research Credit was repealed by 2025 Oregon Laws Chapter 36, Section 4. It is no longer available for new claims. Oregon businesses conducting qualified research can still claim the federal Section 41 R&D credit on their federal return, but there is no state-level equivalent as of 2026.
Who qualifies for the Oregon EDLF?
The Entrepreneurial Development Loan Fund is designed for small businesses with 25 or fewer employees or annual revenue under $1.5M. Borrowers must complete free SBDC business counseling before applying. The fund offers up to $1M in direct state loans at below-market interest rates. Businesses must demonstrate job creation or retention in Oregon.
What is the Oregon Business Expansion Program?
It is a performance-based incentive for larger traded-sector companies creating at least 50 net new jobs that pay 150% or more of the county average wage. The company must have at least 150 existing U.S. employees and demonstrate a 'but for' showing that the Oregon expansion would not proceed without the incentive. The grant amount is negotiated individually and is income-tax-based. Most small businesses will not meet the thresholds — this is a larger-employer incentive.
Can I get help with export financing in Oregon?
Yes — the Oregon Export Promotion Program (administered by Business Oregon) reimburses up to $7,500 for eligible export costs including trade show fees, compliance testing for foreign markets, and website localization. The program is targeted at small and mid-size Oregon businesses new to or expanding in international markets. Federal resources like EXIM Bank export credit insurance and SBA export loans are also available to Oregon businesses through standard federal channels.