Oregon Royalty Fund (ORF)

About this funding opportunity

An official website of the State of Oregon Learn How you know »(how to identify a Oregon.gov website)An official website of the State of Oregon »

Translate this site into other Languages Albanian Arabic / اللغة العربية Basque Belarusian Bosnian Bulgarian Chinese (Simplified) / 简体中文 Chinese (Traditional) / 繁體中文 Croatian Czech Danish Dutch English Estonian Finnish French / Français Georgian German / Deutsche Greek Haitian Creole Hawaiian Hebrew Hindi / हिंदी Hungarian Indonesian Irish Italian Japanese / 日本語 Korean / 한글 Latin Latvian Lithuanian Macedonian Maltese Mongolian Myanmar (Burmese) Nepali Norwegian Persian Polish Portuguese Romanian Russian / Русский Samoan Serbian Slovak Slovenian Somali / Af Soomaali Spanish / Español Swahili Swedish Tatar Thai / ภาษาไทย Turkish Ukrainian Vietnamese / Tiếng Việt Welsh Yoruba

Search this siteSubmitclose Oregon Royalty Fund (ORF)

Page Navigation Oregon Royalty Loan Program (ORL)

The Oregon Royalty Loan Program (ORL) is an alternate financing solution for projects that are not yet bankable, but are more like angel or venture capital deals. This program accommodates growing companies that do not yet qualify for traditional financing.

Contact

Business Finance Officer

Subscribe for our email updates

The percentage of sales varies with each project, but will yield a 2X return from royalty payments over a three- to five-year period. Additional payments may be required in the event of sale of the company or change in ownership. Once the 2X repayment has been achieved, royalty payments stop, and the company has satisfied its repayment obligation. Who is Eligible?

Participants must create or retain jobs and must be a "traded sector business" (as defined in ORS 284.550). Loans may be available up to $1,000,000. Each Royalty and Angel Loan request will be evaluated on a case-by-case basis, but in general the applicant will be required to have: Existing history of reoccurring sales; and Potential for rapid growth in sales; and History of significant gross profit margins or reasonable expectation of achieving a significant gross profit margins; and Collateral to secure the loan and or personal guarantees of founding owners with 20% or more ownership*; and The Borrower will be required to raise a 1:1 outside equity match.

\* A lack of sufficient collateral or a lack of guarantor support may result in a higher return requirement to offset the higher risk associated with either not having sufficient collateral and or guarantor support. How Does Funding Work?

Oregon Royalty and Oregon Angel Loan financing provides benefits to Oregon businesses comparable to traditional debt and equity financing, which may include: Business owner does not dilute ownership interest; Oregon Royalty Loan and Oregon Angel Loan financing may be less expensive than equity-based investment; Loan payment structure may better align with business cash flow; Both Oregon Royalty Loan and Oregon Angel Loans are for a 3 to 5 year period; Oregon Royalty Loans are repaid at a predetermined percentage of sales / revenue on a monthly basis until an overall amount, typically 2X, is returned. Oregon Angel Loans are repaid at a monthly interest only based on the Annual Mid-term Applicable Federal Rate (AFR) with a balloon payment due at an Exit event that will typically yield a 2-2.5X return. An Exit refers to any liquidity event, including a merger, acquisition, buyout, additional outside debt financing or any type of change in management control. Makes financing available that may not be available from traditional sources of debt or Business Oregon's other business finance programs. What is the Application Process?

New applicants are encouraged to submit an Intake Form. For those ready to apply, please submit a completed application to Business Oregon.

Help us improve! Was this page helpful?

YesNo

Hidden Submit

Your browser is out-of-date! It has known security flaws and may not display all features of this and other…

Topic areas: General and Cross-cutting R&D.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Oregon Royalty Fund (ORF) is administered by Business Oregon (Oregon Business Development Department) (Business Oregon), listed via Business Oregon (Oregon Business Development Department).