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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 State’s economy.

At a glance 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.

The Best 5 Oregon Small Business Loans 

1. Beneficial State Bank

Beneficial State Bank is a reputable financial institution in Oregon that prides itself on its community-centered approach. This 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 financing. 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 help you with a cash injection when your business most needs it. 

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

1. Ondeck

Launched in 2007, OnDeck was established with the objective to provide capital to start-ups and small businesses. OnDeck not only bases its offers on credit rating, they also focus on the viability of your business. 

OnDeck provides short and long-term loans from $5.,000 to $500,000. You can also take advantage of its credit offers, which range from $6,000 to $100,000. 

A big advantage to OnDeck is that applying takes 10 minutes, and the processing of the loan itself takes only 26 hours.

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. 

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. 

3. Square Capital

Founded in 2014, Square Capital provides small businesses with unsecured loan options to facilitate rapid company expansion and growth. To make use of Square Capital, you must  be an existing customer. 

Grants range from $300 – $100,000 with many short-term repayment options. Square Capital also offers a Merchant Cash Advance (MCA) option. With a MCA you make repayments as a fixed percentage of credit/debit card transactions.

Square Capital’s application process is easy and convenient and can be completed online within minutes. It generally processes applications and provides you with the funds you need within a matter of days. 

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

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!