Jump Start Business Incentive Program
- To develop a financial incentive program and funding sources that can be used to “jump start” businesses that wish to locate or expand in downtown Pendleton.
- To develop a financial incentive program that encourages property owners to make improvements that update and enhance the lease ability of downtown properties.
- To develop a financial incentive program and funding sources that can be used to support business sustainability and retention.
Property Owner Incentives
|Funding Source||Urban Renewal Funds|
|Assumptions||Projects must have a reasonable probability to increase property values in order to positively impact the tax increment financing requirement of Urban Renewal Plans.|
|Provision Support||Pendleton Downtown/Riverfront Urban Renewal Agency, 2003.
Section IV Urban Renewal Projects, Section B Urban Renewal Projects, Sub-section 2, Assistance to Property Owners/Lessees for Rehabilitation, Redevelopment, or Development.
Loans and/or grants for property rehabilitation and development, redevelopment and other improvements. Property to be improved may be residential or commercial. Loans may be at or below market rates, and assistance can include direct loans or guarantees of loans made by third parties.
Loan Incentive Specifics:
- Low interest loan to support permanent improvements to property interior (i.e.: HVAC, ADA access, required fire and safety measures, or other interior improvements to enhance ability to lease)
- Low interest loan to support purchase of permanent fixed assets to support a secured tenant (i.e.: major equipment, business specific leasehold improvements such as built-in cabinets, bar, kitchen design, etc.) Permanent fixed assets must remain with the property for 5-years or a penalty will be assessed.
|Square Footage of Occupied Space||Property Owner Incentive Loan: $10/sq ft for a maximum of $60,000 per project|
|Main Street as Priority Focus||Property Owner that owns commercial property on Main Street will receive a loan premium incentive of an additional $5 per square foot of occupied space above and beyond program loan incentive of $10 per sq ft|
|Any property owner that receives a loan from this program is eligible to apply for additional funds at the end of year two, provided that payments have been made as agreed.|
New Business Owner Incentives
|Funding Sources:||Downtown Revitalization Fund (DRF)*|
|Negotiate with each applicable service provider to establish a marketable program|
|*DRF will be funded by the pay-back of Community Development Block Grant (CDBG) loans(s) beginning in January 2010.|
|Assumptions||Incentives and loan incentives will be given only to official businesses that meet the new or expansion requirements within the Pendleton downtown area, each as defined in this plan.|
|Provision Support:||Cheri Davis, CEO, Horizon Project, Inc.|
|Norm Winters, Commercial Lender, Community Bank|
|Mary Baker, CDBG Specialist, OR Business Development|
|Funds collected during the pay-back period of a CDBG are de-federalized and become available to fund economic growth projects upon collaboration of the Loan Advisory Group and the non-profit entity in charge of fund administration.|
Loan and Business Development Incentive Specifics:
- Low interest loan to support purchase of non-permanent business specific assets (i.e.: racks, shelves, cash register, printer, computer, etc). To be funded by DRF.
- Low interest working capital loan to pay for expenses during start-up phase of a new business (i.e.: water, sewer, power, rent, etc.). To be funded by DRF.
- Free Consultation with a Small Business Development Center (SBDC) Professional through Blue Mountain Community College.
- Reduced pricing and easy access to training and a mentor or business consultant (i.e.: Quick Books, Web Site Optimization, Customer Service, Maximizing Window Displays) through SBDC at Blue Mountain Community College.
- Reduced pricing for initial year of business license fee for new business.
- Expedited building permit process by The City of Pendleton.
- Free energy efficiency consultation by The Department of Energy.
- Reduced pricing for print and radio advertising during start-up phase of a new business (to be negotiated with and funded by radio and newspaper companies)
- Access to a volunteer/reduced rate work crew to help with moving, painting,set up (to be negotiated with and funded by contractors)
- Reduced pricing to help with start-up marketing design work (i.e.: business logo, website design, business cards, letter head, etc., to be negotiated with and funded by private businesses)
- Reduced initial year of Chamber Membership
- Square Footage of Occupied Space
- Business Owner Incentive Loan: $5/sq ft for a maximum of $40,000 per project
- Number of new jobs created and retained by a new/expanding business
- $1000 bonus grant per average number of verifiable FTE at year-end; payable to the business for sustainability purposes such as: debt repayment, rent, power bills, and maintenance projects. Jobs must have been created as a direct result of opening a new or expanding a business to downtown.
- Target Businesses (As identified in the following studies: Pendleton Downtown Resource Team Report & Destination Development)
- New or expanding business that is one of the types listed below will receive a loan premium incentive of an additional $2.50 per square foot of occupied space above and beyond program incentive of $5 per sq ft
- Unique Retail
- Men’s Clothing Store
- Shoe Store
- Live Entertainment
- Day Care
- Art Gallery
- Grocery Store
- Children’s Clothing
- Specialty Candy Store
- Main Street as Priority Focus
- New or expanding business that occupies property on Main Street will receive a loan premium incentive of an additional $2.50 per sq ft of occupied space above and beyond program incentive of $5 per sq ft
- Any business owner that receives a loan from this program to start a new business or expands an existing business, and remains in business for two years after such date, is eligible to apply for additional funds at the end of year two, provided that payments have been made as agreed.
Jump Start Program FAQ’s
|What is the Jump Start Program?||Jump Start is one of many programs available through the Urban Renewal Agency to support the vitality of downtown Pendleton. The program offers benefits including low-interest, hassle-free loans for business and property owners located within the area of historical significance in downtown Pendleton. That is the area from the 1500 block of SW Court/Dorion to 1100 Block of SE Court/Dorion Avenues and the land between SE 3rd to SW 3rd from the River to the Railroad Tracks|
|How do I apply?||Contact the Administration Committee Chair, Robb Corbett at 541-966-0221. Robb will help you get started and point you to helpful resources. For your convenience, a loan applicant checklist is attached.|
|How much money can I get?||Maximum loan amounts are determined by a number of factors, including square footage of occupied space and credit application. The maximum loan amount for a business owner is $40,000. The maximum loan amount for a property owner is $60,000.|
|What is the turn around time from application to getting the money?||The committee meets one time per month. Once a completed application packet is submitted, a decision will be communicated within 30 days and loan proceeds will be available within 3 weeks from the time the decision is made.|
|How do I find out more information?||
Contact the Administration Committee Chair, Robb Corbett (Jump Start Incentive Program Property/Business Owner) at 541-966-0221.
Please include the following along with your completed loan application:
- Signed & Dated Personal Financial Statement
- Last 3 years personal & business tax returns
- Business Plan
- Feasibility Study, if appropriate
- Financial projections for at least the first 2 years of operation
- Resume on all key participants
- Copy of buy/sell agreements, if any
- Completed credit application from bank, if involved
- Copy of Articles of Incorporation, Operating Agreement, LLC, etc.
In addition to the above requirements, the following are also required for Business Owner loan requests:
- Summary of previous experience in the field
- Detailed business plan outlining the vision, plans, cash flow, and financial projections
- Plan for Key Man Life Insurance
- If Angel Investor Capital is involved, a statement of what return on investment is expected\
- has been officially licensed and operating for at least one year.
- is opening an additional location in downtown Pendleton.
- is increasing square footage used for business purpose in downtown Pendleton and is creating at least one job or FTE over the 12-month period following expansion.
|JUMP START CLIENT PROGRAM APPLICATION.pdf||30.02 KB|