Business Finance and Incentives

Quality Jobs Program

We're committed to investment and quality job growth.

A healthy business climate is central to the mission of the Portland Development Commission (PDC). We strongly support job creation and investment that provide a full range of employment opportunities and economic benefits to all residents. To that end, PDC offers the Quality Jobs Program (QJP) for business development.

The program encourages quality job growth, high density employment and investment in targeted industries in urban renewal areas. QJP serves a wide and diverse range of the business community, from small business to large corporations.

Highlights

The Quality Jobs Program recognizes and rewards those companies who pay higher wages and invest more in the city. While average wage levels and job density remain key components of this incentive loan program, investment in buildings and equipment is an added consideration. The program’s formula also provides larger loan amounts for higher wage jobs.

The Quality Jobs Program addresses a challenge particular to small business: a need for capital which is often greater per employee than that for larger companies. The QJP award may be doubled per job for the first ten jobs, making the program more accessible to companies with few employees while allowing all employers to take advantage of the additional benefit.

Benefits

The Quality Jobs Program provides a flexible loan (amounts calculated using the chart below) for costs associated with physical improvements and infrastructure. The first performance period of two years has no accrual of interest; payments in the next five years are interest only; then after these combined seven years, principal and interest payments are amortized for up to 20 years.

To calculate benefits, compute company average wage and determine a base award. Add to the base award the additional benefit from investment. Double the total benefit per job for the first ten employees; multiply the remaining employees by the total benefit per job.

For example, a company with average wages of $30,160 per year (200 percent of minimum wage), making a $250,000 investment in capital improvements, would be eligible for $3,500 per employee for the first ten employees, and $1,750 per employee thereafter. The cap is $750,000 per business.

Borrower Requirements and Performance Goals

Eligible businesses must be either relocating to an urban renewal area (URA) or expanding in a URA, and must provide at least 75% of their goods, products or services to other businesses. The program is not available for retail or for speculative development. The loan amount cannot exceed eligible capital expenditures to be undertaken by the employer. The employer must also meet the following goals:

• Provide an average wage of at least 200 percent of Oregon’s minimum wage, including a good benefits package (minimum wage as of January 2006 is $15,600 per year/$7.50 per hour)
• Establish a job density of one employee per 800 square feet or less of building area
• Enter into a First Source Agreement with Worksystems Inc. (WSI)
• Participate in a mid-cycle compliance review with PDC staff
• Maintain the requirements listed above for a minimum of two years

The Quality Jobs Program is available in the following Urban Renewal Areas (URA), subject to available budget:

Map your property! You can quickly determine whether your business is located in one of the URAs listed above by entering an address into our GIS Mapping tool, and then clicking on the Development link in the top navigation of the query results window.

The Quality Jobs Program may also be used in conjunction with the Economic Opportunity Fund, a new and flexible incentive program. Maximum combined EOF and QJP award amounts are capped at $750,000.

To Qualify and Apply

Portland companies able to obtain some financing from private sources or lenders, but not enough to achieve their objectives, are potential candidates for a PDC business finance loan. Applicants must show that their business will create new or retain existing jobs paying competitive wages and benefits, with real opportunities for advancement.

Business Finance Loan Rating Criteria

Companies must usually provide a minimum of 10 percent of the project costs/equity. Existing businesses should be capable of providing equity and loan collateral appropriate to the project and financing requested. Applicants must complete a PDC Business Loan Application and provide a letter of interest describing the reason for the relocation/expansion, and why public resources should be used to support the venture, as well as additional documents. A list of these documents can be obtained along with the application from PDC Business Finance, 503-823-3321, or email Neal Fitzgerald..

PDC’s loan underwriter and/or loan committee may need additional information based on program requirements.

Definitions and Exceptions

Job Creation Date: The start of a period of time in which the company will complete hiring objectives outlined in the loan commitment.

Employment Level: Number of full-time employees upon which the loan is based.

Worksystems, Inc.: Links regional employment and training services with regional business development activities, through a joint venture with the region’s community colleges, One Stop Centers, the Oregon Employment Department and the PDC. Participants in the QJP must enter into a First Source Agreement with WSI.

First Source Agreement: Executed through Worksystems Inc. Determines performance standards for WSI employee recruitment activities; this is the arrangement through which Quality Jobs Program participants list job openings. In order to meet the loan forgiveness condition, QJP participants use WSI's program for employee hiring to retain the established number of employees for the full two-year term.

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