The bill is designed to help dismantle “historic systemic barriers and (invest) in our economy and our people and future generations as it relates to accessible capital for all communities of color and underserved businesses.”
Portland Business Journal
June 25, 2021
The Oregon Legislature this week passed a bill that would expand access to capital for underserved businesses. The legislation now heads to Gov. Kate Brown, who’s expected to sign it.
By Matthew Kish – Staff Reporter, Portland Business Journal
The Oregon Legislature this week passed a bill that would expand access to capital for underserved businesses. The legislation now heads to Gov. Kate Brown, who’s expected to sign it.
Brown testified in favor of the bill in the opening days of the legislation. The bill was a priority of Brown’s Racial Justice Council.
The legislation would set up a fund that would reimburse lenders for losses on loans to disadvantaged businesses. It would also set up a $10 million fund that would make loans to disadvantaged and emerging small businesses.
The bill is designed to help dismantle “historic systemic barriers and (invest) in our economy and our people and future generations as it relates to accessible capital for all communities of color and underserved businesses.”
“This policy is a step in the right direction toward remedying systemic and historical inequities that have resulted in lack of access to capital for communities of color,” said James Parker, executive director of the Oregon Native American Chamber.
The chamber is a member of Oregon Small Business United, which supported the legislation.
A similar bill nearly passed last legislative session.
Business Journal reporting has shown significant disparities in access to capital, including a steep decline in U.S. Small Business Administration loans to Black-owned businesses and a near two-to-one advantage to businesses in majority-white census tracts when it comes to obtaining traditional small-business loans.
The bill passed the Senate Thursday on a 24-4 vote. It previously passed the House on a 38-21 vote.
https://www.bizjournals.com/portland/news/2021/06/25/oregon-access-to-capital-legislation.html