Oregon loan program created to add jobs draws little interest since June 1 launch

Little interest in Ore. loan program to add jobs

SALEM, Ore. — Nearly two months after it was launched, a lending program created by Oregon lawmakers to help companies add workers has resulted in just two new jobs.

The BOOST program was launched June 1 with authority to lend up to $4 million to businesses that can create new permanent full-time jobs in Oregon.

The program, which stands for Building Opportunities for Oregon Small Business Today, also can issue $1 million in total grants.

But since it began, only four companies have applied for grants and none has been approved.

Two businesses have applied for loans. One of them, a Medford wine-making company, says its $85,000 loan has led to two jobs.

A spokesman for the state agency administering the loan and grant program said many other companies have made inquiries.

“I would assume they either decide they don’t want to go through with the application or they don’t meet enough of the qualifications,” said Marc Zolton, spokesman for the state Business Development Department.

The $5 million for BOOST loans and grants comes from the projected revenue increase anticipated from the state’s more aggressive tax collections.

The loan program provides up to $150,000 per applicant for up to four years.

To qualify, applicants must have fewer than 100 employees and must compete nationally or internationally for customers. They also must demonstrate an ability to create or retain jobs with the money they borrow and use for a variety of operating expenses.

Dan Sullivan, managing partner with Pallet Wine Co. in Medford, said applying for the $85,000 loan through BOOST was not a difficult process, especially compared to securing a business loan through a commercial bank during the current recession.

But small-business advocate Jan Meekcoms said BOOST isn’t generating a lot of interest because it doesn’t meet critical needs of many businesses.

Meekcoms, Oregon director for the National Federation of Independent Business, said her organization conducted a survey of concerns and found that state help to pay for new employees or equipment was not a top priority.

“The critical issue is a lack of customers — the need for more demand for goods and services,” she said.

Until Oregon businesses are more confident that the economy is expanding, they’re not going to be hiring new workers, Meekcoms said.

Information from: The Register-Guard, www.registerguard.com