2828 NE Alberta Street, Portland, OR 97211

Small loans for small businesses

The lack of access to affordable capital is an acute problem for small businesses in Portland's low-income communities. These businesses traditionally do not qualify for, and may not need, the larger minimum amounts that banks usually provide.

The Mayor's Office and the Portland City Council had specifically supported the idea of a small business lending program to address the strong need for small and micro-business working capital.

The loan fund offers three primary products and services: (a) small business loans from $1,000 up to $50,000 to qualifying low-income community businesses in Portland, (b) individual real estate loans up to $1,000,000 to small businesses located in low-income communities of Urban Renewal Areas in Portland, and (c) technical grants to small home-based businesses. Micro Enterprise Services of Oregon serves as the program manager, providing technical assistance to borrowers.

Development Type: Small business loan fund

Project Timeline: First loan closed, November 2006

Project Partners: Portland New Markets Fund I, LLC; Portland Development Commission; Micro Enterprise Services of Oregon; US Bancorp Community Development Corporation

Total Project Cost: $5.0 million

NMTC Allocation: $5.5 million

Small Business Lending: $1 million

Small Real Estate Lending: $4 million