Program Description & Eligibility
Albina Opportunities Corporation (AOC) is a non-profit loan fund that received initial capitalization from various state, local and private funding sources. With this fund, AOC will consider loan participations with local area private and non-profit lenders. It can provide fixed and floating rate gap and quasi-equity loans, lines of credit and credit enhancements. Refinance of existing debt is generally ineligible. The size of loan participations can range from $10,000 to $200,000 (not to exceed 10% of AOC’s corpus). Eligible business loans must meet the conditions of our approved tax exempt status including loans to Portland’s underserved small businesses in distressed neighborhoods. These businesses include women-, immigrant-, disabled, and minority-owned businesses that are “under-banked” or do not have access to traditional credit opportunities.
Confidentiality Statement
Each applicant must provide a signed Confidentiality Agreement to AOC as part of its application. This agreement indicates that the applicant agrees that any and all information provided to AOC by applicant or received by AOC from a third party will remain confidential for purposes of AOC’s loan approval process. Applicant agrees that AOC may share this information within its organization for the purpose of reviewing Applicant’s request for a loan.
Collateral Standards
AOC may fund loan requests that subordinate its security interest to commercial lenders involved in a project. Additional security may be required for AOC loans, such as assets owned by company principals personally or other off-project assets. Personal guarantees are required as a general rule.
Step One
Prospective applicants must complete an Initial Inquiry Form with a Confidentiality Statement and submit it to AOC. Our Executive Director will review the business loan request with the potential applicant to determine eligibility and initial compatibility with AOC’s program. AOC also encourages an applicant to seek loan assistance from one of their personal lending resources. The Executive Director is pleased to meet with the applicant and/or the applicant’s loan officer to review the opportunity. Once this initial process is completed and the opportunity looks promising, AOC requests the applicant submit a Business Loan Application to AOC.
Step Two
Once an applicant has been deemed eligible to apply, a $100 non-refundable application fee must accompany the Business Loan Application. Approved loans will also be charged a loan fee as a predetermined percent of the AOC loan amount at loan closing. All loan closing costs associated with the project and loan fees can be included in the total project costs.
Step Three
AOC’s Executive Director will notify each applicant on the status of the application package and report if any additional information is required. The applicant and AOC’s Executive Director will schedule a meeting to discuss any questions either may have, and determine the next step for the applicant. The application process will take approximately 1-2 weeks from the time a complete Business Loan Application has been submitted with all required documents.
Step Four
AOC’s Executive Director will schedule the applicant’s loan to be reviewed by AOC’s Loan Committee, which meets twice per month. The applicant’s Business Loan Application will be reviewed and during this time the committee will hear presentations by the Executive Director and applicant (if the applicant would like to be present), ask questions of applicant (if present), review loan structuring, and recommend or not recommend the loan for AOC Board approval.
Step Five
If the applicant’s loan is approved by AOC’s Loan Committee, AOC and any partnering organizations will prepare loan closing documents and schedule a closing date for the loan funding. During this period, AOC’s Business Services Coordinator will schedule a meeting with the borrower to complete a Business Assessment Questionnaire and Skills Assessment Checklist. These two pieces of information will assist AOC in determining the most valuable Business Advisory services for each new borrower.
Collateral Standards
AOC may fund loan requests that subordinate its security interest to commercial lenders involved in a project. Additional security may be required for AOC loans, such as assets owned by company principals personally or other off-project assets. Personal guarantees and assignment of life insurance are required as a general rule.
AOC Business Advisory Services
Borrowers who receive a loan are encouraged to become a member of AOC. What does it mean to become an AOC member? Simply put, becoming a member enables a borrower to take advantage of the network of skilled Business Advisors who volunteer to advise AOC Borrowers and provide one-on-one mentoring and problem-solving assistance. AOC believes that mentoring support provided to small business owners is one of the most effective tools available for creating successful and sustainable businesses. One of the most significant benefits to AOC borrowers is the help and support provided by our volunteer Business Advisors. These individuals are experienced business owners and are well connected within our community. AOC knows that when you are successful, its loans will be repaid so that future loans can be made to other business owners.