The availability of capital for businesses to start and expand and pursue valuable projects is critical for Oregon’s goal of creating more quality jobs, both in the long-run and during the current economic recovery.

Business financing is critical for entrepreneurs looking to launch new ventures, for existing companies who need to purchase equipment and land to expand, and for innovators pursuing energy and other valuable projects.  

In many ways, the availability of both debt and equity capital for Oregon companies is dependent upon economic issues at the national and global level. Yet even in some of these cases we can work with our federal elected leaders on solutions. In other cases, there are actions that Oregon can take independently that will improve the flow of capital.

Oregon Business Plan Recommendations 

• Preserve funding for the Oregon Growth Account that has been successful at delivering re-turns to the Common School Fund by making promising investments in Oregon companies and Oregon Funds like the Oregon Angel Fund.
• Restructure the management of the Oregon Investment Fund, or create a new fund, to bet-ter deliver on the purpose of the program to simultaneously maximize returns for the state pension fund while investing in promising Oregon companies. Examples abound for how other states and provinces structure these funds to both maximize return to pension holders and spark job growth. Some possible changes include hiring local fund managers or requir-ing fund managers to spend a certain amount of time in Oregon or meeting with Oregon companies.
• Maintain key economic development loan programs and incentives through Business Oregon
• Maintain a modified Business Energy Tax Credit.
• Streamline the management and delivery of all of the state’s business finance tools and in-centives, which currently reside in different agencies and departments. The Treasurer’s of-fice and Business Oregon should take the lead.
• Add new tools where gaps exist, such as payroll-based incentives that incent high-wage companies to expand in Oregon.
• Better leverage federal tools such as Small Business Innovation Research and Small Business Technology Transfer grants.
 

Key Documents and Materials

Align State Economic Development Tools to Better Meet the Needs of Business. An initial report from Governor Kitzhaber's transition team.    January 2011.
Access to Capital Backgrounder.  Prepared for March 4 Oregon Cluster Network Meeting by Oregon Business Plan staff. 
Meeting Summary:  Access to Capital.  Oregon Cluster Network.  March 4, 2010.
Meeting Summary:  Oregon Business Plan Capital Working Group
Benchmarking Oregon's Business Financing Tools.  Oregon Business Development Department.  Dec, 2009
Benchmarking Oregon's Business Incentives.  Austin + Peak Report.  February 15, 2010.