Finimpact

Oregon Small Business Loans

If you’re a new or existing small business in the State of Oregon, then you’ll be happy to know that there are an array of small business loan options available in this state. With more than 5,000 new small businesses opening every year, these operations make up an essential part of the Beaver...

Oregon Small Business Loans
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist

Considering the growth in the number of small businesses within the state of Oregon, it comes as no surprise that a large number of lenders are offering competitive loans and attractive terms. We’ve put together a comprehensive guide that outlines the best options for small business loans in Oregon.

Oregon Guide to Small Business Loans

1. Beneficial State Bank

Beneficial State Bank is a reputable financial institution in Oregon, which is completely community-centered. This well-known and established facility has a large number of services on offer, for new and growing businesses.

If you’re in the construction industry, this bank will be of particular interest to you. As, this bank offers a number of specific options for commercial and real estate development, including affordable housing. Beneficial State Bank also offers refinancing and acquisition of:

  • Multifamily properties
  • Real estate loans (medium and long term)
  • Owner-occupied commercial properties
  • Non-owner-occupied properties

A popular option at Beneficial State Bank is the Business Builder Loan. For capital or financing, this loan starts at $10,000 through to $150,000. The time-frame of this loan ranges from five to ten years. You can also apply for this loan through a credit line, where the loan period is set at six years.

2. People’s Bank of Commerce

This Oregon-based bank offers a wide range of business grants. It has a primary focus on real estate and development and, as such, offers special contractor loans. In addition, you can take advantage of its commercial and construction loans and lines of credit.

The People’s Bank of Commerce also offers many Small Business Administration (SBA) loan packages, including conforming loans.

3. Entrepreneurial Development Loan Fund

Going the extra mile, specifically when it comes to business start-ups and small enterprises, the Entrepreneurial Development Loan Fund (EDLF) (a company made up of nine or fewer employees), provides business owners with a series of attractive loan options.

The business loans, offered by Entrepreneurial Development Loan Fund, come with a limit of $75,000 and a fixed interest lf 2%. The best part about this loan is that the repayment period extends to up to five years.

4. Mercy Corps Northwest

Popular in Oregon, Mercy Corps Northwest takes small business funding to the next level. They offer start-up grants tailored to companies that are in their pre-launch or first-year phase. The maximum grant amount you can get is $20,000, with repayment terms of up to five years. The interest rates are determined by the applicant’s credentials.

They also have an Expand/Grow loan that provides funding of up to $50,000.Companies that have been operational for at least twelve months are eligible for these loans. This loan type comes with a repayment period of up to five-year.

Mercy also offers smaller loans so businesses can build a better line of credit. The loans range from $1,000 - $2,500, and the cost of closing these loans ranges from $25 - $50. Having a good line of credit creates trust in your business and improves your business’s credentials, which is helpful if you wish to apply for an SBA loan further down the track.

5. Columbia Bank

Columbia Bank has a diverse range of grants and financing options available in the state of Oregon. Columbia purchased Pacific Continental in 2017. This means it has a comprehensive understanding of the needs of small businesses within the Pacific Northwest. Some services include:

  • Cash flow loans
  • General loans
  • Real estate grants
  • Business growing loans
  • Lending options for the agricultural sector
  • Land development and construction grants

Because Columbia is a Preferred SBA Lender, it’s able to provide customers with flexible conditions and repayment terms. As a preferred lender, it also offers a shorter waiting time for grant approvals.

Summary of the Top 5 Oregon Small Business Loans


Institution

Sector

Good For

Beneficial State Bank

Real Estate/Property

  • Start-ups
  • Acquisition

People’s Bank of Commerce

  • Real Estate
  • Development/Construction

Companies in need of cash injection

EDLF

General

Start-ups

Mercy Corps Northwest

General

  • Start-ups
  • Companies in their first 12 months of doing business

Columbia Bank

General/Agriculture

  • Start-ups
  • Growing businesses

Top Online Oregon Small Business Loan Options

Many services have moved online, and financial services are no exception. In addition to the above providers and products, there are a host of private online options, which can assist with start-up costs or inject cash into your business when you most need it.

Below, we’ve listed some of the best online financial institutions to consider for small business loans.

1. Fundbox


Fundbox is an online fintech company offering loans and lines of credit to small businesses operating in the state of Oregon and throughout the rest of the country. With Fundbox loans, the application process is simple, and no guarantees are required. In addition, you can apply for a flexible line of credit of up to $100,000, - and having such a financial resource on hand can be incredibly useful for meeting short-term financial needs.

At Fundbox, turn-around times are quick, credit score requirements are low, and no additional hidden fees are charged. However, in order to qualify for a Fundbox line of credit, you need to have been in operation for three months or more and have annual revenue of $25,000 or more. In addition, the credit score requirement of 500 or more still applies.

The Bottom Line

Once you do get approved, you can expect to receive the funds as quickly as the next business day.

Try Fundbox

Learn more about Fundbox in our comprehensive review.

2. BlueVine


A leading and trusted online institution, BlueVine offers a variety of small business loans and other types of financial assistance. It has been in operation since 2013 and has experienced massive growth, due to its flexible lending options. This lender is also popular because of its relatively easy application eligibility requirements.

BlueVine provides lines of credit, short and long-term loans. You can apply for a long-term loan of up to $5,000,000, with repayment terms of up to ten years.

The Bottom Line

Depending on your business status and credit, you could secure a short-term loan with a fixed interest rate for as low as 4.8%. Repayment terms typically range from 6-12 months.

Try BlueVine

Learn more about BlueVine in our comprehensive review.

3. Credibly


Since 2010, Credibly has been offering fast and cheap small business loans to companies in Oregon and around the country. With generous repayment terms and lenient eligibility requirements, Credibly loans come in several forms:

  • Long-term business expansion loans. These long-term loans are issued specifically to aid entrepreneurs in expanding their small businesses, - therefore, a business plan is required as a part of the application. Here, the loan amount can range between $150,000 and $5,000,000, and repayment terms can range between 3 and 10 years.
  • Working capital loans. Up to $400,000 in value, working capital loans are offered to help entrepreneurs meet short-term financial needs. The terms for such loans can range between 6 and 18 months.
  • SBA loans. SBA loans are backed by the government, and, therefore, often offer more favourable terms. Credibly doesn’t disclose the maximum loan amount for SBA-type loans, but they do specify that the term length can range between 2 and 25 years.

The Bottom Line

Credibly also offers other financial products, including merchant cash advances, business lines of credit, equipment financing, and invoice factoring.

Try Credibly

Learn more about Credibly in our comprehensive review.

How to Prepare for a Small Business Loan in Oregon

Completing a business loan application can be a daunting process, especially for first-time borrowers. Although the exact methods and required documentation you need to provide will vary from lender to lender, we’ve put together a quick guide of the most common things you will need to prepare.

There are three factors that lenders will generally take into consideration when you apply for a loan:

  1. Credit score
  2. Funding amount
  3. Business documentation

1. Credit Score

Your credit score is a crucial element that will be used by lenders to determine whether or not your business will qualify for a loan. They will also look at your credit score when determining the terms of your loan. You can increase your credit score by:

  • Paying your debts on time
  • Ensuring that debts are paid in full
  • Keep the use of any existing credit to below 30%
  • Keeping open accounts where you’ve got good credit

2. Funding Amount

When applying for a small business grant, it’s vital that you know how much funding you need and what you need the funding for. When calculating your required funding amount, ensure you have considered the following costs:

  • Equipment and machinery
  • Staff payroll
  • Working capital
  • Office rental
  • Inventory
  • Initial cash-flow

3. Documentation

A large part of the application process is having the correct documentation - required by lenders - ready to be processed. It’s worth noting that while larger institutions such as banks require many different documents, online lenders tend to require fewer documents. In general, you should look into preparing the following:

  • Essential personal and business information (ID, Social security, etc.)
  • Statement of purpose
  • Personal and business bank statements
  • Business and personal credit scores
  • Business financial statements
  • Business permits and any legal documents
  • Proof of collateral

The Bottom Line

Oregon provides a variety of loan options to its business owners, across various industries. Whether you’re looking for capital to start up or expand your Oregon business, there is likely a financial option that suits your needs.

It’s crucial to research and understand the type of funding you require and then to explore the lending services available to you. Our guide has directed you to Oregon's best small business loan options and has helped you choose the one best for you. Good luck and happy lending!

Summary

Considering that small businesses make up a major part of the state’s economy, Oregon has become a hot spot for small business owners. The thriving conditions in the Beaver State make it an ideal environment for new and existing businesses alike. This level of momentum makes Oregon one of the best states in which to secure a small business loan.

There is a wide range of lenders available to fund these enterprises, with many offering tailor-made plans for those starting new businesses. Whether you’re a start-up or growing company, our guide informs you of the best lending options and the best financial institutions from which to secure them.

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About the Author

Tetiana Sitiugina-Babiuk

Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

More about me