Areas Served: Josephine and Jackson County
The majority of loan funds are available to for-profit businesses in Jackson and Josephine counties in Oregon.
Eligible projects include land purchase (non-speculative), new buildings, machinery and equipment and start-up or working capital.
Loans may not be used to refinance existing debt, however.
Loans from $10,000 to $150,000 are available and must be collateralized.
Loans secured by real estate are available up to $250,000. Terms generally range from 3 to 10 years depending on collateral and purpose but secured real estate loans may have maturities up to 20 years.
SOREDI charges a competitive interest rate ranging from 2 percent under prime rate to 4 percent above prime with a minimum rate of 8% (currently in effect).
Rates are fixed for the life of the loan with no pre-payment penalty.
A loan fee of 1.5% is charged on each loan and the borrower is responsible for any out of pocket expenses incurred.
Although SOREDI may take a lien position behind that of a primary lender, adequate collateral is still required.
To qualify for a loan, a candidate must create at least one job for every $15,000 to $20,000 borrowed.
The borrower must further have an equity position of at least 10 percent of the project amount and the loan cannot fund more than 75% of the project.
And, as might be expected, the business plan must show reasonable prospect of repayment.
Contact InformationSouthern Oregon Regional Economic Development, Inc.
Address: 673 Market Street
City: Medford
State: Oregon
Website:
http://www.soredi.org/Page.asp?NavID=190
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