Financing and Incentives

Financing and Incentives for Locating Businesses

Besides traditional banks, Portland has a number of resources that may be able to assist a new locating business. The Portland Development Commission offers gap financing and other loan products for businesses, with special attention paid to businesses locating in an Urban Renewal Area. The State of Oregon through Business Oregon offers a number of financial products including direct loans, loan guarantees and development bonds. Business Oregon also offers special financing for Brownfield Redevelopment in the form of both grant and loan funding. Also, locating businesses should consider the Small Business Administration’s 504 Loan Program that helps businesses purchase equipment and commercial real estate while retaining working capital.

In addition to loans, there are a number of incentives offered to locating businesses in Portland. Most incentives are targeted towards a specific business activity, type or location and are available in different forms from tax credits to grants.

Incentives available to newly locating businesses include the Portland Enterprise Zone, a tax abatement program for firms planning to invest a substantial amount in property assets in North and Northeast Portland; Development Opportunity Services (DOS) a grant program for pre-development activities in select neighborhoods; the Storefront Improvement Program offers cash grants and technical assistance to business and property owners in eligible neighborhoods that can be used for a variety of improvements, ranging from repainting to purchase of new windows and awnings; and the Business Energy Tax Credit offered through the Oregon Department of Energy is for eligible investments in energy conservation, recycling, renewable energy resources and less-polluting transportation fuels.

It’s important to understand program objectives and eligibility requirements for all financing and incentive programs before deciding to pursue them.