On January 29, 2025, the Oregon House Committee on Economic Development, Small Business, and Trade convened to discuss House Bill 2350, which aims to establish a permanent fund dedicated to supporting small businesses across the state. This initiative is a response to ongoing challenges faced by small enterprises in accessing capital, particularly in rural areas and among underserved communities.

The proposed fund, which would provide grants, forgivable loans, and traditional loans, is designed to address the significant financing gaps identified in biennial capital scans conducted by Business Oregon and other stakeholders. These scans consistently reveal that nearly half of all small businesses struggle to meet their financing needs, with many resorting to unsustainable debt due to predatory lending practices. The bill aims to create flexible financing options that can be tailored to the specific needs of small businesses, particularly those with fewer than 30 employees and less than $3 million in sales.

During the meeting, representatives highlighted the fund's potential impact, noting that since its inception in 2020, it has facilitated over $2.9 million in funding to 45 companies, leveraging an additional $18.3 million in private investment. Notably, 75% of these projects have been located in rural areas, with a significant focus on the food and beverage manufacturing sector.

Committee members raised questions about the fund's eligibility criteria, the types of projects it would support, and how businesses could access these resources. Currently, the fund does not allow for payroll expenses but can cover costs related to equipment, machinery, and marketing. While there are no formal targets for funding distribution to underserved communities, the program has informally prioritized outreach to rural businesses.

The discussion also touched on the application process, which has been described as manageable, with regional development officers providing essential support to applicants. However, concerns were raised about the need for transparency and broader marketing efforts to ensure that more businesses are aware of and can access the fund.

As the committee concluded its discussions, the overall sentiment was one of optimism regarding the potential for this fund to bolster Oregon's small business landscape. The next steps will involve further refinement of the bill and continued dialogue on how to effectively implement and promote the program to maximize its impact on the state's economy.