Prosper Portland Business Finance Programs

Contact the Lending Team via email or 503-823-3442

With a mission to create economic growth and opportunity for Portland, Prosper Portland connects you to  resources to create more jobs for Portland. We work with Portland businesses to identify business needs and eligibility for either our assistance programs or those of our partners, and then help you find the program that fits best.

Prosper Portland offers:

  • A variety of flexible loans to meet your unique business or property needs
  • Flexible repayment terms tailored to help you ramp up and stabilize your business or commercial property
  • Business support through Prosper Portland’s Inclusive Business Resource Network (IBRN)
  • The ability to combine Prosper Portland loans and grants to make your project a reality
  • Potential partnership with your primary lender to bridge a financing gap
  • Dedicated and experienced staff to help you navigate the process

We also connect you to the Portland Enterprise Zone program, efficiency improvement programs, and state and federal incentives.

Commercial Property Loans

Small Business Loans

Commercial Property Loans

Prosper Portland offers a variety of commercial real estate loans. Commercial Property Loans (CPLs) are available throughout Portland.

Prosper Portland assists businesses that would not otherwise qualify for a bank or credit union loan, except that there is an explainable shortcoming. Prosper Portland is not a financial institution and can therefore offer flexible underwriting, while still ensuring wise investments of public resources.

Below is a description of general program features followed by specific loan program criteria.

The Lending Team at Prosper Portland has extensive experience in banking, lending, and related financial services and they are prepared to answer questions and ensure you have the information necessary to make informed decisions. If you are interested in applying for a loan or would like assistance understanding our offerings, please email us: lending@prosperportland.us.

General Features

Location Project must be located within the City of Portland
Applicant Applicants may be a for-profit or non-profit entity
Credit Trade lines must be current and in good standing; no delinquent or unpaid taxes, collections, charge-offs, or repossessions within the last five years; may not be in bankruptcy or have filed for bankruptcy in the past three years; must provide satisfactory explanations for any derogatory credit information within the past three years.
Interest Rate Index Treasury Note Yield as published in the Wall Street Journal at the time of underwriting for the Treasury Note term most closely approximating the term of the loan.
Margin The interest rate will be determined by adding a margin to the Interest Rate Index. The amount of the margin will be based on loan product and the risk rating assigned to the loan in the underwriting process.
Origination Fee 2% of loan amount
Amortization and Payments At a minimum, monthly interest-only payments are required. All outstanding indebtedness, including any unpaid principal balance and all accrued and unpaid interest, is due at maturity. Prosper Portland may provide for interest reserves, require principal payments, amortize the loan for purposes of calculating interest and principal payments over a period not to exceed forty years, and otherwise establish any other payment terms.
Personal Guaranties Guaranties from all individuals or entities with 20% or more ownership interest in the borrowing entity (N/A for CPACE).
Minimum DSCR 1.10 (N/A for predevelopment)
Minimum Risk Rating “C”
Policy Conformance All projects must conform with (1) Prosper Portland’s Green Building, (2) Business Equity, and (3) Workforce Development policies, if applicable. Projects must align with the city’s Advance Portland plan and any applicable TIF Action Plan.

Commercial Property Loan Programs

Eligible Applicant The legal entity owner of the real property where the proposed project will take place, or the legal entity holder of an option to purchase that real property.
Eligible Projects Attached and/or multifamily residential projects; commercial projects; industrial/manufacturing projects; and mixed-use projects.
Occupancy N/A
Use of Funds Soft costs associated with exploring the feasibility of an eligible project, including (but not limited to) architectural, engineering, environmental review, market and financial feasibility analysis, appraisal, and consulting costs.  Developer fees are not an eligible use of funds.
Loan Amount $25,000 to $500,000
Term Length Up to 36 months, which may be extended by up to 12 months provided that reasonable progress is being made to complete predevelopment work.
Primary Collateral may include Deed of trust, assignment of rents and security agreement recorded against the subject real property; assignment of the option to purchase, or purchase and sale agreement, if the borrower does not yet own the real property at closing.
Secondary Collateral may include Assignment of work products paid for with predevelopment funds; security interest in business personal property.

Eligible Applicant The legal entity owner of the real property where the proposed project will take place, or the legal entity holding a long-term leasehold in the real property where the proposed project will take place.
Eligible Projects Tenant improvements in commercial or industrial/manufacturing projects, including in the commercial component of a mixed-use project.
Occupancy Owner-occupied and non-owner-occupied properties are eligible.
Use of Funds Soft and hard construction costs of eligible tenant improvements.
Loan Amount $100,000 to $2,000,000
Term Length If the borrower is the tenant, the term length may be up to the length of the lease (including any tenant-exercisable extension options).  If the borrower is the real property owner, the term length may be up to 120 months.
Primary Collateral may include Deed of trust, assignment of rents, and security agreement recorded against the subject real property.
Secondary Collateral may include Assignment of A&E and construction contract(s); security interest in business personal property.

Eligible Applicant The legal entity owner of the real property where the proposed project will take place, or the legal entity holding a long-term leasehold in the real property where the proposed project will take place.
Eligible Projects Attached and/or multifamily residential projects; commercial projects; industrial/manufacturing projects; and mixed-use projects.
Occupancy Not applicable
Use of Funds Property acquisition and soft and hard construction costs of an eligible project.
Loan Amount $250,000 to $5,000,000
Term Length Up to 60 months
Primary Collateral may include Deed of trust, assignment of rents, and security agreement recorded against the subject real property.
Secondary Collateral may include Assignment of A&E and construction contract(s); security interest in business personal property.

Eligible Applicant The legal entity owner of the real property where the proposed project will take place, or the legal entity holding a long-term leasehold in the real property where the proposed project will take place.
Eligible Projects Middle-income and market-rate multifamily rental, commercial, industrial/manufacturing, and mixed-use projects. Single-family 1-4 unit detached, condo, and townhouse units are not eligible.
Occupancy Non-owner-occupied multifamily rental, and owner-occupied and non-owner-occupied commercial, industrial, and mixed-use projects are eligible.
Use of Funds Property acquisition costs or to refinance construction financing. General refinancing is not
an eligible use of funds.
Loan Amount $250,000 to $5,000,000
Term Length Up to 180 months
Primary Collateral may include Deed of trust, assignment of rents, and security agreement recorded against the subject real property.
Secondary Collateral may include UCC-1 filing against equipment used in operations of the subject property; security interest in business personal property.

Eligible Applicant The legal entity that owns the fee simple interest in the real property being financed.
Eligible Projects Middle-income and market-rate multifamily rental, commercial, industrial/manufacturing, and mixed-use projects. Single-family 1-4 unit detached, condo, and townhouse units are not eligible.
Occupancy Non-owner-occupied multifamily rental, and owner-occupied and non-owner-occupied commercial, industrial, and mixed-use projects are eligible.
Use of Funds Eligible Utility Improvement and Seismic Rehabilitation Improvements as defined in the
Loan Amount $250,000 to $5,000,000
Term Length Maximum term is the sum of the construction period, plus the weighted average life of the eligible improvements being installed.
Primary Collateral may include Benefit Assessment Lien recorded against the subject real property.
Secondary Collateral may include Not required

Application Requirements

  • Loan Application (PDF or online)
  • Pro Forma
  • Business tax returns for previous three years
  • Most recent fiscal year-end balance sheet and profit & loss statement
  • Interim balance sheet and profit & loss statement
  • Schedule of business debt
  • Purchase & Sale Agreement or Option
  • Articles of Organization
  • Executed Operating Agreement (to confirm ownership and signer authority)
  • City of Portland Business License
  • W-9

  • Personal Financial Statement(s) from owner(s)
  • Personal tax returns for previous three years
  • Owner ID
  • Owner(s) resume

Small Business Loan Program

Our small business loan program offers resources to loan-ready small businesses for a variety of business purposes. Small business loans are available throughout Portland, and everyone is welcome to apply if they meet basic eligibility requirements.

Prosper Portland assists businesses that would not otherwise qualify for a bank or credit union loan, except that there is an explainable shortcoming.

Prosper Portland is not a financial institution and can therefore offer flexible underwriting, while still ensuring wise investments of public resources.

The Lending Team at Prosper Portland has extensive experience in banking, lending, and related financial services. They are prepared to answer questions and ensure you have the information necessary to make informed decisions. Email us at lending@prosperportland.us.

Terms

Loan Amount $25,000 to $250,000
Interest Rate Prime + margin based on risk-rating
Origination Fee 2% of loan amount
Maturity Up to 10 years depending on loan purpose
Repayment Principal & Interest payments; may include interest-only period or longer amortization period in some cases
Collateral UCC filing and may require real estate depending on risk-rating
Personal Guaranties From all owners with (≥20% ownership)
Minimum Debt Service Coverage Ratio 1.10
Minimum Risk-Rating “C”

Eligibility

  • Must be located within the City of Portland
  • Loan proceeds must be used to support operations in the City of Portland
  • Business must be a for-profit entity
  • Business must be profitable in the most recent year, or demonstrate profitability, but for non-recurring expenses
  • Must be in business for at least two years

  • Age-restricted businesses (exclude individuals under 18 from premises)
  • Automobile financing (automobiles, trucks, & food carts)
  • Home-based businesses
  • Purchase of an existing business

Application Requirements

  • Loan Application
  • Business tax returns for previous three years
  • Most recent fiscal year-end balance sheet and profit & loss statement
  • Interim balance sheet and profit & loss statement
  • Schedule of business debt
  • Copy of lease agreement
  • Articles of Organization
  • Executed Operating Agreement (to confirm ownership and signer authority)
  • City of Portland Business License
  • W-9
  • Business plan and projections

  • Personal Financial Statement(s) from owner(s)
  • Personal tax returns for previous three years
  • Owner ID
  • Owner(s) resume

Among other things, we use a matrix to evaluates five key criteria:

  • Business ownership experience
  • Industry experience
  • Debt coverage ratio
  • Credit history, and
  • Collateral coverage

Borrowers are required to:

  • Annually report on job creation/retention and income of staff
  • Submit annual personal and business tax returns